May 2019 Archives

The IRS requires that a person or entity possessing an IRS employer identification number ("EIN") has 60 days in which to report a change in its "responsible party" designation using an IRS Form 8822-B. Further, beginning May 13, 2019, the "responsible party" can no longer be an entity but must be an individual. Currently, the IRS is not imposing penalties for failure to notify it of this change, but the IRS has cautioned that an applicant may not receive a notice of deficiency or notice of demand for tax if it does not have a current "responsible party" designation on file.