Tax ID numbers are free and no one should pay for them
of ConsumerAffairsTheFederal Trade Commission (FTC)has issued warning letters to operators of websites sellingEmployer Identification Number (EIN) filing services, cautioning that some of their business practices may be illegal under theFTC Actand the agencysImpersonation Rule.
The letters alert companies that they may bemisleading consumersby falsely implying an affiliation with theInternal Revenue Service (IRS) a violation that can result in steep civil penalties.
Impersonating the government is unlawful, period, saidChris Mufarrige, Director of the FTCs Bureau of Consumer Protection. The FTC is warning businesses that sell services the government provides to review their websites and advertisements for symbols and words that mislead consumers.
Services charging for free government tools
The websites in question are reportedly charging consumersup to $300for EINs even though EINs can be obtainedfor freedirectly through the IRSs official website.
An EIN is a federal identifier used by businesses, estates, nonprofits, and households that employ workers. It functions similarly to a Social Security Number but is used for organizational tax purposes.
According to complaints received by the FTC, some websites:
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Use IRS-like logos, fonts, and layoutsto imitate government websites
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Include IRS in their domain names or ads
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Use terms likeEIN Assistant, mimicking the IRSs free tool
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Fail to clearly disclosethat their site is not affiliated with the IRS
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Do not make it obviousthat the fee they charge is for optional third-party services
Legal consequences loom
The FTC's letters serve as a warning: any violation of the Impersonation Rule could result incivil penalties of up to $53,088 per violation, along with possible requirements torefund consumers.
While the Commission is not yet accusing the companies of wrongdoing, the letters urge them toreview all marketing and advertising, includingpaid ads, websites, social media, and promotional materials, to ensure full compliance with the law.
The crackdown is part of the FTCs broader effort to protect consumers fromscams involving government impersonation. In recent years, the agency has filed several lawsuits against similar deceptive practices, including cases againstSuperior Servicing LLC,Panda Benefit Services, andDOTAuthority.com, Inc.
Consumers are advised to obtain EINsdirectly through the IRSatirs.govto avoid unnecessary fees and possible deception.
Posted: 2025-04-01 18:52:32
