As a US taxpayer, it is always prudent to notify the US Internal Revenue Service (IRS) in case there is a change to the taxpayer’s name, address or any incorrect information on record that needs to be rectified such as responsible party or principal officer, or any other tax-related information to ensure that IRS has all accurate information available, and can correspond easily with the taxpayer.
Nevertheless, keeping oneself updated about the processes involved could save you time and avoid problems when such tax-related information needs to be updated. Here is a brief overview of the processes involved in case of address change or other tax-related information prepared by AG Tax analysts.
Change in Address
In case of an address change, a taxpayer may enter the new address while filing their tax return if the annual tax return is yet to be filed. However, if the return has already been completed and filed, the taxpayer would need to file Form 8822, Change of Address, or Form 8822-B, Change of Address or Responsible Party – Business, providing details of the old and new addresses, taxpayer identification number, Social Security Number (SSN), and other required details, and send them to the address mentioned on the forms.
Joint filers would both need to provide details of the address change and sign the form, while recently separated spouses who were filing jointly would need to file individual forms and notify the IRS of their new addresses.
It will normally take 4 to 6 weeks for the IRS to update the information on their systems.
Change in Entity Name
It may so happen that one may decide to change their entity name. This update can be done while filing the annual tax return as well, and depending on the type of form, one may need to check the name change box on the return. For example:
- Box 3 Line E on page 1 of Form 1120 (C Corp)
- Box 2 Line H on page 1 of Form 1120S (S Corp)
- Box 3 Line G on page 1 of Form 1065 (Partnership)
For LLCs taxed as disregarded entity, or in case the change has been made before or after the return has been filed, the IRS needs to be notified of the change through a letter written on a company letterhead with details of the company name, and taxpayer identification number (TIN) of the current principal officer, general partner, grantor, owner, or trustee; along with a copy of the state approved/ filed amendment or articles showing proof of the change and signed by the business owner or authorized representative.
Change in Principal Officer/Responsible Party
A ‘Responsible Party’ or ‘Principal Officer’ is the main person who is contacted by the IRS in case it needs to get in touch with a company regarding their annual corporate tax returns, therefore it is crucial that the IRS is updated at the earliest about any changes to the principal officer or responsible party. In order to update the IRS of this change too, one needs to file Form 8822-B, Change of Address or Responsible Party – Business or write a letter to the IRS including details such as full name, and Social Security Number of the newly appointed principal officer/ responsible party; providing the Employer Identification Number (EIN) in case the responsible party is another entity. Upon receiving the mail, the IRS will send a confirmation mail within 60 days; a copy of which needs to be resent to the IRS by fax.
The above discussion only covers some of the common information that the IRS should be kept up-to-date with respect to a taxpayer. If there are any additional changes or details that you feel the IRS should be informed about that is specific to your business it is best to consult the IRS or a tax professional so that they can provide guidance to you in regards the right process to update the required information.
AG Tax LLP Can Help
Tax situations can be complex and burdensome, if you have any tax-related queries or need assistance with tax planning or filing please contact AG Tax. Our tax professionals are highly-experienced with US and Canadian tax laws and can provide you the right guidance to handle your tax situation.
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