Tax Insights

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IRS revamps EIN process to enhance security

EIN, tax, IRSAs part of its ongoing security review, the IRS is making a change to the Employer Identification Number process. Starting May 13, only individuals with tax identification numbers may request an EIN as the “responsible party” on the application. This will provide greater security by requiring an individual – instead of entity – to be the responsible party and improve transparency.

The responsible party must have either a Social Security number or an individual taxpayer identification number. Generally, the responsible party is the person who ultimately owns or controls the entity. If your entity has more than one person who meets this definition, you must decide which individual will serve as the responsible party. If you have changes to your responsible party, you need to complete Form 8822-B, Change of Address or Responsible Party, and file it within 60 days of a change. Read more about this change here.

Elizabeth Bolt