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Parms + Company has been ECDI’s auditing firm for 3 years and we have been pleased with our working relationship with the firm. As 501(c)(3) that receives in excess of $500,000 of Federal funding per year, this audit is critical to ECDI as it becomes our “scorecard to the world.” - Steve Fireman President Economic and Community Development Institute

Home > Resources + Tools > Blog > IRS Requires Tax ID Updates

IRS Requires Tax ID Updates

May 24, 2013

Earlier this month, the IRS issued regulations which will require taxpayers with Employer Identification Numbers (EIN) to update their information with the IRS.  These regulations which take effect next year, will apply to everyone possessing an EIN on or after January 1, 2014.  This means these rules will apply retroactively and not only to individuals and businesses who will be applying for EINs after that date.

The IRS issues EINs to employers, sole proprietors, partnerships, corporations, nonprofits, estates, trusts, and other business entities for tax filing and reporting purposes.  Many EINs are being issued to individuals acting on behalf of the applicant but then are no longer authorized to represent the applicant.

To address this problem, the IRS revised Form SS-4, Application for Employer Identification Number, to require discloser of the applicant’s “responsible party.”  The recently issued regulations will require any person that has been issued an EIN to provide updated information to the IRS regarding their responsible party.  The IRS will publish a form for persons to use to disclose the correct application information.

I am a long-time and satisfied client of Parms + Company. When I first met John Parms and Ted Johnson, they were obviously very bright, aggressive and engaging. I knew then they would be a perfect fit for my accounting needs. Parms + Company have been an integral part of the growth and development of my law practice. They and their staff are always available to respond to their client’s needs. Not only do I utilize their services for my personal and business matters, I call upon them frequently to serve as an expert witness in forensic accounting. Their skill, reputation, and professionalism are assets in which I trust and rely. I highly recommend Parms + Company to anyone in need of skilled accounting services at an affordable price.

- Frederick D. Benton, Jr., Esquire