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New IRS Regulation

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Kelly A. LaGrave
Foster Swift Business & Corporate Law Report
November 13, 2013

Do you have a corporation, LLC, partnership, or other entity with a Federal Employer Identification Number (EIN)? Have you recently experienced a change in who is responsible at your business? Has your business moved?

There is an important new IRS regulation that will apply to your entity.

Beginning January 1, 2014, any entity with an EIN must file Form 8822-B to report the latest change to its responsible party. The form can be found by going to www.irs.gov. Use this form if the entity changed its business mailing address, business location, or the identity of the responsible party. Also, any entity that changes their address or identity of their responsible party must file the form whether or not they are engaged in a trade or business.

Form 8822-B must be filed within 60 days of the change. If the change in the identity of the responsible party occurred before 2014 and the entity did not previously notify the IRS of the change, then Form 8822-B must be filed before March 1, 2014 (reporting only the most recent change).

"Responsible party" is defined as the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets.

If a representative signs for the taxpayer on form 8822-B, a copy of a completed Power of Attorney must also be attached to the form 8822-B.

Generally, it takes four to six weeks to process a change.

If you have any questions regarding this change to the Act and how it may affect you, please feel free to contact one of Foster Swift's Business Attorneys.