You cannot change the EIN on an existing bank account — you must close the old account and open a new one in the correct name.
Banks link an EIN to a specific account during setup. That link does not move. If your business EIN is wrong on the account, or if you obtained a new EIN and need to move the account to it, the bank will not update the existing account number. You will need to open a fresh account under the correct EIN and transfer the balance yourself.
The reason is straightforward: the EIN is part of the account's legal identity. Changing it would mean changing whose account it is, which is a new account in the bank's system, not an edit to the old one. This matters for tax reporting, fraud prevention, and regulatory compliance.
Key Takeaways
- Banks cannot modify the EIN tied to an existing account; you must close the old account and open a new one under the correct EIN.
- Before closing the old account, transfer any remaining balance to the new account and update any automatic payments or direct deposits that use the old account number.
- Notify the IRS if you opened an account under the wrong EIN, because the bank may have reported deposits under that incorrect number.
- The process typically takes one to two weeks from application to first deposit, depending on the bank's verification timeline.
- Keep the old account open for at least 30 days after switching to catch any delayed transactions or reversals.
Why the EIN cannot be changed on an existing account
The EIN is a permanent identifier for the account itself. When you open a business bank account, the bank verifies the EIN against IRS records and links it to the account number. That connection is baked into the account's legal structure and the bank's internal systems.
Changing the EIN would require the bank to reassign the account to a different legal entity, which is not an account update — it is closing one account and opening another. Banks treat this as a new account because tax reporting, fraud monitoring, and regulatory filings all depend on the EIN-to-account link being stable and accurate.
Steps to open a new account under the correct EIN
Start by gathering the documents the bank will ask for: your EIN assignment letter from the IRS (Form SS-4 confirmation or the letter you received), your business formation documents (articles of incorporation, partnership agreement, or sole proprietor ID), and a government-issued ID for the person signing the account application.
Contact the bank where you want the new account and ask for a business account application. Tell them upfront that you have an existing account under a different EIN and need a separate account under the correct one. Some banks can flag this internally to prevent confusion. Fill out the application with the correct EIN and submit the required documents.
The bank will verify the EIN with the IRS, which usually takes three to five business days. Once approved, the account opens and you receive a new account number. Do not close the old account yet.
Transferring money and updating automatic payments
Once the new account is active, transfer the full balance from the old account to the new one. You can do this by writing a check to yourself, using an ACH transfer if both accounts are at the same bank, or requesting a wire transfer. If the balance is large, ask the bank whether a wire or ACH is faster — wire transfers usually clear the same day, while ACH takes one to two business days.
Before or during the transfer, update any automatic payments, direct deposits, or recurring charges that use the old account number. This includes payroll deposits, vendor payments, loan payments, and subscription charges. Contact each organization separately and provide the new account number. Do not rely on the bank to forward payments automatically — they will not.
If you miss updating a payment source, the transaction will fail or bounce. The payer may charge you a fee, and you may incur late fees if it was a bill payment. Check your records for every regular transaction tied to the old account.
Notifying the IRS about the wrong EIN
If the old account was open for any length of time, the bank likely reported deposits to the IRS under the wrong EIN. This creates a mismatch between what the IRS expects to see under your correct EIN and what actually appears. You should contact the IRS to report the error.
Call the IRS Business and Specialty Tax Line at 1-800-829-4933 and explain that you opened a bank account under an incorrect EIN. Have your correct EIN, the wrong EIN used on the account, and the account number ready. The IRS can flag the account in their system and may issue corrected documents if deposits were reported.
If you filed a tax return and reported income that was actually deposited into the wrong-EIN account, you may need to amend that return. A tax professional or the IRS can advise whether an amended return is necessary based on the amounts involved and how long the account was active.
When to close the old account
Wait at least 30 days after opening the new account before closing the old one. This window catches delayed transactions, reversals, or payments that were in process when you switched. If a check you wrote clears after you close the account, it will bounce and create overdraft fees and problems for the payee.
After 30 days, review the old account one final time to confirm no transactions are pending. Then contact the bank and request closure. Ask whether they will charge a closure fee — some banks do, especially if the account is closed within a certain timeframe. Confirm that the account is fully closed and that you receive written confirmation.
If you obtained a new EIN for the same business
If you changed your business structure, merged with another company, or the IRS issued a new EIN for another reason, the process is the same: open a new account under the new EIN and close the old one. However, you should also notify your accountant or tax professional, because the change affects how you file taxes and report business income.
The IRS may require you to file final returns under the old EIN and opening returns under the new one, depending on the reason for the change. Do not assume the old and new EINs can be used interchangeably — they cannot. Mixing them on tax documents or bank accounts creates compliance problems.
Frequently Asked Questions
Can the bank transfer the account to a new EIN without closing it?
No. The EIN is part of the account's legal identity, and banks cannot reassign it. You must close the old account and open a new one. Some banks may offer to waive fees or expedite the new account as a courtesy, so it is worth asking.
What happens if I keep using the old account after opening the new one?
The old account remains active until you close it. Deposits will continue to be reported under the wrong EIN, and you will have two separate accounts to manage. This creates confusion during tax time and makes reconciliation harder. Close the old account once you have moved all money and updated all payments.
Will my credit or business history transfer to the new account?
No. The new account is a separate account with a separate history. If you have an established payment history or credit line on the old account, that does not carry over. You start fresh with the new account number, though the business itself remains the same entity.
How long does it take to open a new business account?
Most banks take three to five business days to verify the EIN and open the account. Some banks offer same-day or next-day opening if you apply in person with all documents. Online applications typically take longer. Ask the bank for an estimated timeline when you apply.
Do I need to notify my vendors and customers about the account change?
You only need to notify people or organizations that send you money or payments. This includes your payroll processor, customers who pay by ACH, vendors who refund you, and anyone else with your old account number on file. You do not need to notify everyone you do business with, only those who deposit into or charge the account.