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IRS: Only individuals with TINs can be ‘responsible party’ in EIN requests

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Tax Hot Topics newsletterThe IRS announced March 27 that, effective May 13, only individuals with a Tax Identification Number (TIN) may serve as a “responsible party” for purposes of requesting an Employer Identification Number (EIN).

Under the new procedures, an entity will be prohibited from using its own EIN to obtain additional EINs through both the paper Form SS-4, “Application for Employer Identification Number” and the online EIN application. Rather, only an individual with either a Social Security Number or an Individual Taxpayer Identification Number may request an EIN as a responsible party.

According to the IRS, the change in procedure is to “provide greater security to the EIN process by requiring an individual to be the responsible party and improve transparency.” If there are changes to the responsible party as a result of this change in procedure, the entity can change the responsible official designation by completing Form 8822-B, Change of Address or Responsible Party within 60 days of the change.

The IRS’s new procedure will have an impact on a business that currently uses its own EIN to request additional EINs. That business should take appropriate steps to ensure that an individual with a TIN can serve as the responsible party to request additional EINs.

Contacts:
David Auclair
Managing Principal
Washington National Tax Office
T +1 202 521 1515
 
David Sites
Partner
Washington National Tax Office 
T +1 202 861 4104

Shamik Trivedi
Senior Manager
Washington National Tax Office
T +1 202 521 1511

Cory Perry
Senior Manager
Washington National Tax Office 
T +1 202 521 1509


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