The portion of Sunday’s article on the APOC hearing contained a misleading assertion regarding the Employer Identification Number issued by IRS. The Republican Governors Association asserts that none was required for A Stronger Alaska because ASA did not pay employees. The article stated that an EIN Is “… a number assigned by the IRS that’s used to identify the tax accounts of employers.” This is true, but it implies that this is the only time it is required. It also is the argument made by RGA. It is wrong, a conclusion that is encouraged by the name.
EINs are required for virtually all entities which may have taxable income and deductions which are not attributable to taxpayers required to include the entity’s income. Examples are probate estates, charitable organizations — 501(c)3 groups — and political action committees. EINs are a substitute for our Social Security numbers.
There was argument at the Oct. 21 APOC hearing about whether or not banks require EINs to open bank accounts. They do when it isn’t a personal account. Banks are required to report suspicious activity in their accounts to federal authorities. These reports would be worthless if there wasn’t a simple way to link them to a person or organization/entity. The EIN serves that purpose when a SSN isn’t appropriate.
I was surprised that the Alaska Public Offices Commission was apparently not aware of this. It is obvious that the APOC has no simple way to track or aggregate data using the identification numbers. It also appears that the group has overlooked the benefits of requiring those active in election funding to file copies of the required federal filings with it. It would not add additional expense for the filers and might reduce the filers’ work. APOC could still require filing of any additional information it wants.
This would also prevent organizations from playing the shell game which is the focus of the complaint involving the Republican Governors Association and A Stronger Alaska.
— Peter Crosby
Anchorage
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