EINs Will No Longer Be Allowed for Responsible Party in Applying for Identification Numbers Beginning May 13

The IRS has announced there will be changes to the process to issue employer identification numbers beginning on May 13 in New Release IR 2019-58.  The IRS indicated these change are meant to enhance security.

Entities will no longer be able to use their own EIN as the identification number for the responsible party and the change will apply to both EINs obtained online and via filing a paper Form SS-4.  The release describes the responsible person as follows:

Generally, the responsible party is the person who ultimately owns or controls the entity or who exercises ultimate effective control over the entity. In cases where more than one person meets that definition, the entity may decide which individual should be the responsible party.

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Filing Forms 2848 and 4868 Did Not Serve as Proper Notice of Taxpayers' New Address

The IRS is under obligation only to mail notices to the taxpayer’s last known address in order to start the clock running on the time period to take specific actions.  In the case of Gregory v. Commissioner, 152 TC No. 7, the Tax Court ruled that neither Form 2848, Power of Attorney and Declaration of Representative, nor Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, served to change a taxpayer’s last known address.

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