A group tax ID and an individual tax ID answer two different questions for the IRS. An individual tax ID — a Social Security Number, an Individual Taxpayer Identification Number, or an Employer Identification Number — identifies one person or one entity so the government knows who is filing, earning, or owing. A group tax ID, properly called a Group Exemption Number, is a four-digit code the IRS assigns to a central nonprofit so its affiliated chapters can share a single tax-exempt status instead of each applying on its own. The group number never replaces an entity’s individual ID; every chapter under a group exemption still has its own EIN. Understanding which identifier belongs where matters because putting the wrong one on a federal filing can delay processing, trigger penalties, or put a tax-exempt status at risk.
The Three Individual Tax IDs
The IRS uses three main identifiers for individuals and entities, and which one applies depends on who you are.
Social Security Number
The SSN is the default tax identifier for U.S. citizens, permanent residents, and noncitizens authorized to work in the United States by the Department of Homeland Security.1Social Security Administration. Social Security Numbers for Noncitizens The Social Security Administration has issued more than 450 million original SSNs, and nearly every legal U.S. resident has one.2Social Security Administration. The Story of the Social Security Number It appears on your W-2, your personal return, and most financial accounts. Applying is free.
Individual Taxpayer Identification Number
If you have a federal tax filing obligation but are not eligible for an SSN, the IRS issues a nine-digit ITIN instead.3Internal Revenue Service. Individual Taxpayer Identification Number (ITIN) Nonresident aliens claiming a tax treaty benefit, dependents or spouses of U.S. visa holders, and foreign nationals with U.S. income are the typical holders. An ITIN looks like an SSN but cannot be used for work authorization or Social Security benefits. One catch: an ITIN expires if it isn’t used on a federal return for three consecutive years, and you have to renew it before filing again.4Internal Revenue Service. How to Renew an ITIN
Employer Identification Number
An EIN is the tax ID for organizations rather than individuals. You need one for a partnership, corporation, LLC, tax-exempt organization, estate, trust, or retirement plan, and any time you hire employees or withhold taxes on payments to nonresident aliens.5Internal Revenue Service. Employer Identification Number Sole proprietors with no employees can often use their SSN, but most business structures need their own EIN. It is nine digits, and applying through the IRS website is free.
What a Group Exemption Number Does
A Group Exemption Number lets a central nonprofit extend its tax-exempt status to affiliated subordinate organizations without each one submitting a separate exemption application. The IRS issues one determination letter to the parent, and that letter covers every subordinate listed in the group.6Internal Revenue Service. Rev Proc 2026-8 – Procedures for Group Exemption Letters The number itself is a four-digit code that subordinates cite alongside their own EIN on federal filings.
This structure fits a national organization with many local chapters — a fraternal order, a scouting body, a religious denomination with local congregations, a network of community service clubs. Without a group exemption, every chapter would prepare its own application, pay its own fee, and wait months for its own determination letter. The group exemption collapses that into one process managed by the parent.
The parent must already be recognized as tax-exempt under Section 501(c) of the Internal Revenue Code (though it can submit its own exemption application at the same time as the group application). Subordinates must be genuinely affiliated with and under the general supervision or control of the parent. Loose networks where chapters set their own policies typically don’t qualify.6Internal Revenue Service. Rev Proc 2026-8 – Procedures for Group Exemption Letters
How the Two Identifiers Work Together
This is where the difference gets practical. Every subordinate in a group ruling still needs its own EIN. The group number does not replace it. Think of the EIN as the chapter’s individual identity and the four-digit Group Exemption Number as proof of membership in a tax-exempt family. On annual filings, chapters use both: the EIN identifies the filer, and the group number tells the IRS which exemption ruling authorizes their status.
A parent applying for a new group exemption must have at least five subordinates on the initial application, though only one is needed to keep the ruling alive afterward.6Internal Revenue Service. Rev Proc 2026-8 – Procedures for Group Exemption Letters Each subordinate must already hold its own EIN before being added, and the application lists each subordinate’s name, mailing address, EIN, and date of formation.
When to Choose a Group Exemption Over Individual Applications
The group route is worth pursuing when you have a real parent-subordinate structure with at least five chapters that share a common mission, adopt uniform governing documents, and accept oversight from the parent. It is a poor fit when chapters operate independently or vary widely in what they do. The IRS expects genuine supervision, not just a shared brand.
Cost tells part of the story. The user fee for a group exemption letter application is $3,500 under Revenue Procedure 2026-8, and there is an additional fee if the parent is also applying for its own exemption at the same time.7Internal Revenue Service. Internal Revenue Bulletin 2026-1 That fee only pays off when the alternative would be separate application fees for many chapters. A network with only a handful of affiliates may find individual applications simpler and faster.
Two boundaries to note. A central organization can maintain only one group exemption letter. Subordinates organized under the laws of a foreign country cannot be included.6Internal Revenue Service. Rev Proc 2026-8 – Procedures for Group Exemption Letters8Internal Revenue Service. Instructions for Form 89409Internal Revenue Service. Notice of Issuance of Revenue Procedure Regarding Group Exemption Letter Program
What Subordinates Still Have to File on Their Own
Being covered by a group exemption does not eliminate annual filing obligations. Each subordinate generally has to file its own Form 990, 990-EZ, or 990-N depending on size.10Office of the Law Revision Counsel. 26 USC 6033 – Returns by Exempt Organizations Small organizations with annual gross receipts normally $50,000 or less can file the simpler 990-N e-Postcard.11Internal Revenue Service. Annual Electronic Filing Requirement for Small Exempt Organizations – Form 990-N (e-Postcard)
There is one alternative: the parent can file a group return on Form 990 covering some or all subordinates, but only if every included subordinate authorizes it in writing each year under penalties of perjury. Subordinates included in the group return should not also file separately; subordinates left out must file individually. The parent always files its own separate return for its own activities and cannot be included in the group return.12Internal Revenue Service. Returns by Members of Group Ruling13Internal Revenue Service. 2025 Instructions for Form 990 Return of Organization Exempt From Income Tax
A chapter that assumes the parent handles everything and never files is headed for automatic revocation. Any tax-exempt organization, including a subordinate under a group ruling, that fails to file a required annual return or notice for three consecutive years has its exempt status revoked by operation of law.14Internal Revenue Service. Automatic Revocation of Exemption Once revoked, the chapter may owe income tax on its receipts, donations to it are no longer deductible, and it drops off the IRS Tax Exempt Organization Search. Reinstatement is not just a matter of the parent adding the chapter back to the group roster; the chapter has to file its own individual exemption application and pay the fee — the exact outcome the group exemption was meant to avoid.