Does your business have an Employer Identification Number?

In a recent news release, the Internal Revenue Service (IRS) has highlighted what it is calling a security issue related to the contact information it has on file for Employer Identification Numbers (EINs) that it has issued. The IRS is urging businesses, trusts, estates, charities, and other entities with an EIN to update the information they have on file with the IRS, specifically the contact details for the responsible party, which is defined as “the individual or entity who controls, manages, or directs the entity and the disposition of its funds and assets.”

Beginning this month, the IRS plans on sending letters out to EIN holders where it appears the responsible party is outdated. The responsible party information is required to be updated with the IRS within 60 days of any change and that information can be updated by filing Form 8822-B. This form can also be used to update the business mailing address or location during the year instead of waiting until the annual tax return is filed. You can find additional details from the news release here.

If you would like help filling out Form 8822-B or have additional questions about this topic, please reach out to Shelby Graham or your SDK advisor.