Correcting Business Information Where a Nominee Was Used
Many taxpayers have applied for Employer Identification Numbers (EINs) listing on the application an individual or entity other than the entity’s true responsible party as the principal officer, general partner, grantor, owner, or trustor. The use of such an individual or entity, a “nominee”, has resulted in IRS records containing incorrect information. Entities that used nominees on their applications should consider updating the information shown on the original application.
Who Should Update the Information?
Any entity that applied for an EIN listing a nominee as the “principal officer”, etc., and listing the nominee’s Taxpayer Identification Number as that of the principal officer, should send the IRS a letter providing the name and Taxpayer Identification Number (Social Security Number, Employer Identification Number, or Individual Taxpayer Identification Number) of the true responsible party. Entities that submitted applications that showed, as the principal officer, an individual or entity who is no longer the true responsible party also should update the entity’s information.
What the Terms “Nominee” and “Responsible Party” Mean
A “nominee” is someone who is given limited authority to act on behalf of an entity, usually for a limited period of time, and usually during the formation of the entity. The “principal officer, general partner,” etc., as defined by the IRS, is the true “responsible party” for the entity, instead of a nominee. See the Responsible Parties and Nominees page for more details.
Why the Information should be corrected
In the event that the IRS has a need to contact an entity about a tax matter relating to the business, we must be certain we are contacting the correct party. Otherwise, information regarding an entity could be disclosed to someone who is not authorized to receive such information. The IRS is considering several ways to identify the responsible parties of entities. However, by updating the information itself, an entity can establish that it is a reliable partner of the IRS in complying with the Federal tax laws.
How to Update the Information
There is no form available to update the information, and the IRS asks entities updating their information NOT to submit a second EIN application. Instead, the IRS asks that the entity send a letter, on company letterhead, if available, providing the name and Taxpayer Identification Number of the current principal officer, general partner, grantor, owner, or trustor. Be sure to include the entity’s complete name, EIN, and mailing address so we can correctly identify your IRS account. Depending upon the entity’s principal business address, the entity should send the letter to the following IRS campus:
If the entity’s principal business, office or agency is located in:
|Connecticut, Delaware, District of Columbia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, West Virginia or Wisconsin||Alabama, Alaska, Arkansas, Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Utah, Washington, Wyoming, or any place outside of the United States
Send Letter or Fax to:
|Internal Revenue Service
Cincinnati, OH 45999
Fax Number: 859-669-5748
|Internal Revenue Service
Ogden, UT 84201
Fax Number: 801-620-7116
The IRS will send a letter confirming our receipt of the updated information. If the entity has not received the confirmation letter within 60 days, it should fax a copy of the original letter, annotated “Second Request”, to the campus that services the entity’s state.
References and Related Topics