During
the first week in May, the IRS issued final regulations requiring all
taxpayers who have employer identification numbers (EINs) to provide
updated information to the IRS. The regulations will come into effect on
January 1, 2014. The Journal of Accountancy covered the release of
these final rules regarding updating EINs in a recent article.
EINs are issued to employers, sole proprietors, corporations,
partnerships, non-profit associations, trusts, estates, government
agencies, and others, provide an easier means for the IRS to organize and track tax
filings. At present,
it appears that many EINs are being issued to nominees who act for the
applicant but then are not authorized to continue representing the applicant.
In
reaction to this problem, the IRS has revised Form SS-4, Application for Employee Identification Number.
The form now requires that an applicant’s “responsible party” be
identified and that their Social Security number, individual taxpayer
identification number, or EIN be listed on the application. The exact
definition of a “responsible party” depends on what type of entity is
applying for the EIN. Specific definitions can be found in the
instructions provided for completing Form SS-4.
Final
regulations require that those who were previously issued EINs provide
updated information to the IRS. A form will be created by the IRS to
allow those previously issued EINs to provide corrected application
information. The form will require that updated information about the
name and taxpayer identification number of the responsible party be
provided.
These
new regulations will apply to everyone possessing an EIN on or after
January 1, 2014. That requirement means these new regulations will apply
to everyone, not just to people who had EINs issued after January 1,
2014.