What does an EIN reference 101 error mean?
It means the IRS online system flagged a possible name conflict and stopped, not that your application was rejected. You resolve it by phone with the IRS or, more commonly for founders outside the US, by filing Form SS-4 by fax or mail instead of using the online tool at all.
Why non-residents hit it so often
The online tool is built around applicants who already hold an SSN or ITIN and is not reliably open to foreign responsible parties. Many founders meet the error simply because of who is applying, not because anything is wrong.
The way round it
Skip the online tool and file Form SS-4 directly. It is slower than the instant online issue, but it is the route that works and it avoids the loop entirely.
Sources
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