In IR-2021-161, released on July 30, 2021, the IRS is urging entities with Employer Identification Numbers (EINs) to update their on-file information if any changes in responsible party or contact information have transpired.
Regulations require EIN holders to file a Change of Address or Responsible Party, Form 8822-B, with the IRS to make updates within 60 days. It is critical that the IRS has accurate information in case of identity theft or other fraud-related issues.
The IRS has begun to send letters to approximately 100,000 businesses, charities, partnerships, trusts, and estates where it appears the responsible party is outdated. The IRS defines “responsible party” as the individual or entity who “controls, manages, or directs the applicant entity and the disposition of its funds and assets.” Unless an applicant is a government entity, the responsible party must be an individual, not an entity. If there is more than one responsible party, the entity must list whichever party the entity wishes the IRS will recognize as the responsible party.
If you are looking to outsource your company’s tax form reporting services in TY2021 (including Forms 1099, 1098, 1042-S, 3921, 3922 and all Affordable Care Act forms), reach out today to schedule a demo of our system. SPS/GZ provides complimentary TIN Matching service for our clients in advance of filing with the IRS. Taxpayer’s Name and Tax ID Number (either the Social Security Number or the Employer Identification Number) is checked against IRS records to minimize filing errors. Our user-friendly system allows clients to autonomously change any information or amounts in form fields by simply logging into our secure portal. SPS/GZ’s platform tracks all changes, providing an audit trail, and corrections are automatically e-filed with the IRS, so you don’t need to worry about amending forms that were previously filed. We do not charge any extra fees for the correction service unless a special data project is requested. This process, including the 1099 e-file service for amendments, has helped many clients avoid or limit penalties imposed by the IRS.
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