Tax Return Rejected due to EIN on 1099-R

[Lori H]

Has anyone ever had the problem where a Trust EIN is rejected on a 1099-R? This does not make one bit of sense. The employer gets a qualified plan, a ein is issued for the trust, a participant terminates and is paid out, the trust issues a 1099-R, the participant files his/her tax return and the 1099-R gets rejected. Is this due to inactivity with trust. This seems to happen from time to time especially with small employers who have few and far between distributions. Makes absolutely no sense :angry:

What next? Apply for a new EIN? Use employer EIN on 1099R?

[namealreadyinuse]

Yes. They go dormant after two or three years. There is an old (old, old maybe) thread on reactivating them I believe in here somewhere. . .

[WDIK]

Yes. They go dormant after two or three years. There is an old (old, old maybe) thread on reactivating them I believe in here somewhere. . .

Just one old.

http://benefitslink.com/boards/index.php?showtopic=26936

[Lori H]

Our government in action.

Thanks a heap for the link WDIK

[Guest KGriffith]

ASPPA ASAP No. 06-24 discussed this very issue. It states that to reactivate an EIN, you need the following: (1) EIN in question; (2) plan name; (3) mailing address of plan sponsor; (4) contact info in case of questions. The request should be in writing either on plan sponsor letterhead or with a properly signed POA. The request is expedited if you can provide a copy of the original IRS correspondence in which the EIN was assigned. You need to contact JaLynne Archibald at jalynne.k.archibald@irs.gov or fax the request to 800.620.6900. Good luck!

[Jim Chad]

FWIW When Craig Hoffman and ASPPA talked to the IRS about this, they did stop the practice. But I'm afraid we will have to deal with these for a while yet.