IRS Tax ID (EIN) Application

Does a Receivership need a Tax ID (EIN) Number?

When a company goes into bankruptcy or intense restructuring, it’s often placed in receivership. A receivership means that a third-party is responsible for the company and getting it back into shape, with the goal of restoring its profitability and paying off or restructuring its debt. At the end of the receivership, the company is able to control itself once again, or the company may be dissolved entirely if the situation was altogether too dire.

The receivership does not use its own EIN or ITIN or SSN at this time, and it often doesn’t use the company’s, either. Instead, the company’s assets are often (though not always) funneled into a brand new entity, with a new identity and a new tax ID/EIN. This entity will also be dissolved once the company is able to control itself once again. The new entity will need to be responsible for the company’s taxes during the time of the receivership, as this is another part of the company’s on-going debts and restructuring.