A Federal ID Number, commonly known as an Employer identifying Number (EIN), is a unique identifying number provided by the United States Internal Revenue Service (IRS) to corporations and organizations for tax reasons. It is used to identify and monitor a company's financial transactions, such as submitting tax returns, paying taxes, and reporting employee wages.
Example
ABC Company acquired a Federal ID Number from the IRS when they registered their firm. This number appears on their tax returns and other official papers to identify the corporation for federal tax reasons.
