May 2013 Newsletter: EIR News: BiancoCPA: "New Regulations on Employer Identification Numbers via the IRS"

Lori K. Bianco, CPA and CGMA of BiancoCPA, notes that the IRS has issued new regulations regarding employer identification numbers (EINs).

The IRS issues EINs, also known as taxpayer identification numbers, to sole proprietors, limited liability companies, corporations and other employers and entities for tax reporting purposes. Many times, EINs are issued to those acting on the applicant/taxpayer’s behalf, which is often the case with attorneys and CPAs.

The current EIN system occasionally results in accuracy issues and outdated information because the term of those acting on behalf of the applicant may expire. To mitigate this ongoing problem, the IRS recently issued regulations, beginning January 1, 2014, that require EIN-issued taxpayers to update their information via an IRS-issued official form. The regulations apply to all entities possessing an EIN on or after January 1, 2014, which means these new rules apply retroactively.

In addition, the IRS has revised the Form SS-4, or the Application for Employer Identification Number. This revision requires the disclosure of the name and either Social Security Number, Individual Taxpayer Identification Number (ITIN) or EIN of the applicant’s responsible party. The definition of responsible party depends on the type of entity applying for the EIN.

For additional information, please contact Lori Bianco at lori@biancocpa.com or (586) 979-7800 extension 211.