A change in who’s the boss? Form 8822-B

Your Guide to State, Local, Federal, Estate + International Taxation

Form 8822-B, IRS, business, tax, bossDoes your business or entity have a new “responsible person?” If so, use Form 8822-B to notify the IRS.

The IRS requires any entity with an employer identification number (EIN) to report any change to its responsible party within 60 days of the change on Form 8822-B.The form is available on the IRS website at Form 8822-B.

Who is the “Responsible Person” you ask?

For entities with shares or interests traded on a public exchange or that 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; (c) the owner of any entity that is disregarded as separate from its owner; 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.

The 8822-B can also be used by businesses or entities to change your physical or mailing address with the IRS.

Just another filing requirement brought to you by your friendly IRS!

Melinda Nelson, CPA