EIN for plan sponsor...

[K-t-F]

I know that the form 5500EZ requires that the plan sponsor have an EIN... the EZ will not accept a SS#. BUT, up to the point where the sponsor must file the EZ I cant see that it is required that the plan sponsor must apply for an EIN. A self employed individual filing a Schedule C can use their SS#.

So... am I safe to understand that (as stated above) a SoloK client does not have to apply for an EIN for their business until they are required to file the EZ?

Thanks

[Guest mjb]

IRS requires that plan have an EIN if it files a request for determination such as 5300. If prototype is used does ptype sponsor require an EIN? Since EIN can be obtained over the phone by filing a SS-4, whats the big deal against obtaining an EIN at inception.

[K-t-F]

When I set up a plan I apply for the EIN for the plan. The plan does have its own EIN (TIN)

The question is.... does the plan sponsor have to have an EIN or can they simply use their SS# up to the time where they will be required to file an EZ?

These are one man show plans.... no EEs... NO filing requirement since the assets are less than $250K. I have run into instances where the new plan sponsor wants to use their SS# and not apply for an EIN. They are schedule C filers on the business side and want to keep it flowing on that side by continuing to use their SS#. I see not reason why they cant continue to use their SS# UP TO the point where they are required to file an EZ.

[Bird]

File Form SS-4 if the applicant entity does not already have an EIN but is required to show an EIN on any

return, statement, or other document.1

1 For example, a sole proprietorship or self-employed farmer who establishes a qualified retirement plan, or is required to file excise, employment, alcohol, tobacco,

or firearms returns, must have an EIN.

The above is the instruction and relevant footnote from the SS-4 instructions. The footnote seems to say you have to have it, period, but the general instruction says "...but is required to show an EIN..."

On the one hand it's no big deal to get one; on the other I don't think there's any consequence to not having one if you never* need it. I'd say don't bother; the IRS would probably de-activate it for non-use by the time you needed it anyway.

*But keep in mind that you're supposed to file a 5500-EZ for the plan's final year, even if under the dollar threshold, and will need it then.

[K-t-F]

I know that an EZ filer will need to file a final if and when the plan is terminated and rolled over or distributed. My EZ filers know this. My curiosity was just ... until it is needed on the EZ do we need to apply for it?

Maybe this is off the subject but... Can I Sole Prop apply for the # and still use his/her SS# when filing their schedule C? basically get the ein solely to put on the EZ? AND... would including it on the EZ keep it from being deactivated?

Thanks