aggiejim72 Wrote:
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> Trendsource's EIN requirement also means that you
> have to be more intimate with the IRS. I know this
> because I sent this new form to the IRS when I
> changed my address. The EIN increased my
> paperwork. Not a big deal, but this is why new
> shoppers might want to wait to get experience
> before they join Trendsource.
>
> "As previously reported, the IRS in May 2013
> issued final regulations (T.D. 9617) requiring any
> person assigned an employer identification number
> (EIN) to provide updated responsible-party
> information to the IRS (see News Notes, “Final
> Regs. Require EIN Holders to Update Information
> With IRS,” 44 The Tax Adviser 426 (July 2013)).
>
> The IRS has since released revised Form 8822-B,
> Change of Address or Responsible Party—Business,
> for this purpose, as well as instructions
> stipulating the manner and frequency with which
> such information must be provided.
>
> Beginning Jan. 1, 2014, entities with an EIN must
> file Form 8822-B, completing boxes 8a through 9b
> to report any changes in their responsible-party
> information.
Not exactly.
"Last year, the IRS updated the regulations under Code Section 6109 to require an entity with an EIN to report change in the entity’s “responsible party.” Form 8822-B, Change of Address or Responsible Party — Business, is the form used to report these changes. The filing became mandatory with respect to responsible party changes, and voluntary with respect to mailing address changes, effective January 1, 2014. " [
www.employeebenefitslawreport.com]
As sole proprietors with an EIN, there would never be a change in the "responsible party." Address change reporting is voluntary. So this law change does not add any burden to a mystery shopper with an EIN for mystery shopping.
This affects companies with employees, boards of directors, etc., where responsibility for the tax matters might change from Joe Blow to Jane Doe when Joe Blow retires and Jane Doe takes over the tax returns. The entity remains the same, but the name to whom the IRS would send notices of an audit, for instance, might change.
Time to build a bigger bridge.