IRS Mandates Individual Responsible Party for EIN Applications

The Internal Revenue Service (IRS) now requires the responsible party to provide an individual tax identification number when applying for an Employer Identification Number (EIN). Previously, the responsible party could be either an individual or another legal entity. The change in policy is part of an ongoing security review and will prevent businesses from using their own EINs when applying for new EINs. An EIN is a nine-digit tax identification number assigned to sole properietors, corporations, partnerships, estates, trusts, employee retirement plans and other entities for tax-filing and reporting purposes.

Generally speaking, the responsible party should be the person who owns or controls the entity or who exercises control of the entity. The individual must be listed on either form SS-4 or online application on the and submit either their social security number or an individual taxpayer identification number (ITIN). More information on the IRS responsible party change is available by clicking the link.

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