The Federal Trade Commission (FTC) has issued warning letters to operators of websites selling Employer Identification Number (EIN) filing services, cautioning that some of their business practices may be illegal under the FTC Act and the agency’s Impersonation Rule.
The letters alert companies that they may be misleading consumers by falsely implying an affiliation with the Internal Revenue Service (IRS) — a violation that can result in steep civil penalties.
“Impersonating the government is unlawful, period,” said Chris Mufarrige, Director of the FTC’s 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 consumers up to $300 for EINs — even though EINs can be obtained for free directly through the IRS’s 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:
Use IRS-like logos, fonts, and layouts to imitate government websites
Include “IRS” in their domain names or ads
Use terms like “EIN Assistant”, mimicking the IRS’s free tool
Fail to clearly disclose that their site is not affiliated with the IRS
Do not make it obvious that 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 in civil penalties of up to $53,088 per violation, along with possible requirements to refund consumers.
While the Commission is not yet accusing the companies of wrongdoing, the letters urge them to review all marketing and advertising, including paid ads, websites, social media, and promotional materials, to ensure full compliance with the law.
The crackdown is part of the FTC’s broader effort to protect consumers from scams involving government impersonation. In recent years, the agency has filed several lawsuits against similar deceptive practices, including cases against Superior Servicing LLC, Panda Benefit Services, and DOTAuthority.com, Inc.
Consumers are advised to obtain EINs directly through the IRS at irs.gov to avoid unnecessary fees and possible deception.