Additional Information for IRS Tax Number

Responsible Parties and Nominees
To view the full article, please visit:

https://www.irs.gov/businesses/small-businesses-self-employed/responsible-parties-and-nominees

Responsible Parties
All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the "responsible party," controls, manages, or directs the applicant entity and the disposition of its funds and assets. Unless the applicant is a government entity, the responsible party must be an individual (i.e., a natural person), not an entity. If there is more than one responsible party, the entity may list whichever party the entity wants the IRS to recognize as the responsible party. Additionally, entities must report any changes to the responsible party to the IRS within 60 days by using Form 8822-B, Change of Address or Responsible Party - Business.

According to the Instructions for the current revision of the application, the "responsible party" is defined as follows:

For entities with shares or interests traded on a public exchange, or which are registered with the Securities and Exchange Commission, "responsible party" is (a) the principal officer, if the business is a corporation, (b) a general partner, if a partnership, the general requirement that the responsible party be an individual applies to these entities. For example, (c) if a corporation is the general partner of a publicly traded partnership for which Form SS-4 is filed, then the responsible party of the partnership is the principal officer of the corporation. or (d) a grantor, owner, or trustor if a trust.

For all other entities, "responsible party" is the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage or direct the entity and the disposition of its funds and assets. The ability to fund the entity or the entitlement to the property of the entity alone, however, without any corresponding authority to control, manage, or direct the entity (such as in the case of a minor child beneficiary), does not cause the individual to be a responsible party.

Nominees
A "nominee" is someone who is given limited authority to act on behalf of an entity, usually for a limited period of time, and usually during the formation of the entity. The "principal officer, general partner," etc., as defined by the IRS, is the true "responsible party" for the entity, instead of a nominee. The "responsible party" is the individual or entity that controls, manages, or directs the entity and the disposition of the entity's funds and assets, unlike a nominee, who is given little or no authority over the entity's assets.

The Internal Revenue Service has become aware that nominee individuals are being listed as principal officers, general partners, grantors, owners, and trustors in the Employer Identification Number (EIN) application process. A nominee is not one of these people. Rather, nominees are temporarily authorized to act on behalf of entities during the formation process. The use of nominees in the EIN application process prevents the IRS from gathering appropriate information on entity ownership, and has been found to facilitate tax non-compliance by entities and their owners.

The IRS does not authorize the use of nominees to obtain EINs. All EIN applications (mail, fax, electronic) must disclose the name and Taxpayer Identification Number (SSN, ITIN, or EIN) of the true principal officer, general partner, grantor, owner or trustor. This individual or entity, which the IRS will call the "responsible party," controls, manages, or directs the applicant entity and the disposition of its funds and assets.

To properly submit a Form SS-4, the form and authorization should include the name, Taxpayer Identification Number and signature of the responsible party. Third party designees filing online applications are reminded of their obligation to retain a complete signed copy of the paper Form SS-4 and signed authorization statement for each entity application filed with the IRS. Nominees do not have the authority to authorize third party designees to file Forms SS-4, and should not be listed on the Form SS-4.

If a nominee is used in the state formation process and the true responsible party has not yet been identified, the entity must identify that individual before applying for an EIN.

The IRS will continue to pursue enforcement actions to prevent the misuse of EIN applications.

Correcting Business Information Where a Nominee Was Used
In the event a nominee was used to obtain an EIN you are required to correct the information. Otherwise, information regarding an entity could be disclosed to someone who is not authorized to receive such information. The IRS is considering several ways to identify the responsible parties of entities. However, by updating the information itself, an entity can establish that it is a reliable partner of the IRS in complying with the Federal tax laws.

To update the information, complete Form 8822-B, Change of Address or Responsible Party - Business, and send to the address shown below that applies to you.
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1). The website, https://irs-taxnumber.org, was created on October 22, 2020.

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4). Per the disclaimer on https://irs-taxnumber.org/, the business states:
"This website is not affiliated with the US Department of Treasury, the Internal Revenue Service, or any governmental agency. This product or service has not been approved or endorsed by any governmental agency, and this offer is not being made by an agency of the US government."

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