How to: Getting a Foreign EIN with 98 Prefix

SOURCE: https://sedm.org/getting-a-foreign-ein-with-98-prefix/

Used with permission

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Employer Identification Numbers are often required to open business accounts at financial institutions. They are requested from the IRS using the SS-4 form.

A foreign EIN is important for entities such as trusts that are filing as nonresident aliens.

A Foreign EIN is an Employer Identification Number issued by the IRS with a prefix of 98. The procedure for obtaining one is described in:

Internal Revenue Manual, Section 21.7.13.3.2.7 (10-01-2017)
Foreign Entities – Definitions and Instructions
https://www.irs.gov/irm/part21/irm_21-007-013r#idm140344767967888

According to the above article:

1. Foreign EINs are only issued by the Cincinatti and Ogden International Units.
2. Phone numbers:
   2.1 EIN International phone number (267) 941-1099 (not a toll-free number) Hours of operation 6:00 a.m. to 11:00 p.m. Eastern time Monday through Friday
   2.2 EIN International fax number (855) 215-1627 if faxing from within the U.S. and
   2.3 EIN International fax number (304) 707-9471 if faxing from outside the U.S.
3. To indicate a foreign entity
   3.1 Line 10 checked for “Compliance with IRS withholding regulations”
   3.2 For corporations and LLCs, Line 9b has to indicate that it was incorporated in a foreign country. OR
   3.3 There is other information on the SS-4 suggesting foreign status, such as:
   -Tax treaty
   -Foreign entity
   -Treas. Reg. § 1.1441-1(e)(4)(viii)
   -897(i) Election
   -Form 1120-F
   -Form 5471 (Information Return of U.S. Persons With Respect To Certain Foreign Corporations)
   -W-8IMY (Certificate of Foreign Intermediary, Foreign Flow-Through Entity, or Certain U.S. Branches -for United States Tax Withholding and Reporting)
   -W-8EXP (Certificate of Foreign Government or Other Foreign Form Organization for United States Tax Withholding and Reporting)
   -W-8BEN (Certificate of Foreign Status of Beneficial Owner for United States Tax Withholding and Reporting (Individuals))

If a corporation or LLC indicates on line 9b that it was incorporated in the United States, but provides a foreign mailing address and/or location address, a Prefix 98 number will not be assigned.

In addition, you can buy a Foreign EIN from a third party at:

Foreign Grantor’s 98 Number, Makefreedom.com
https://makefreedom.com/product/foreign-grantors-98-number/

We know people who tried this. The office ILLEGALLY refused to assign a “foreign” EIN unless the corporation is formed outside the USA, rather than U.S..

One member applied for an EIN for a California corporation and we note that on the form they ask the type of return form the corporation would be filing. Aha!! Naturally one would say 1120-F (if any). This is a subtle way of duping people into claiming their corporation is “domestic” (if they give the typical response of form 1120.

What a weird thing to ask on this form!

They could have just asked if the corporation is foreign or domestic but they obviously don’t want anyone thinking too much about that. So instead it’s “what return form do you plan to file” to get the answer they want from you.

One person had a firm applying for an EIN for them, and they usually just complete the form for the client, but they called the person to go through each line, because they knew the person might have a different viewpoint on this form!