Incorrect EIN

[Guest naveen]

We have a takeover plan for an employer (sole proprietor) filing a 5500EZ.

There are no employees and the employer is the sole participant.

It was noticed that the EIN used for earlier filings was the SSNo. of the employer.

For the 2007 filing we tried to file the form electronically, but were unable to do so since the software (DATAIR) does not accept the data and returns an Error message.

Any advice as to how we should go about. Surely we would have to amend the earlier years filings using the appropriate EIN.

[Lori Friedman]

I wouldn't amend any of the previous years' returns. For the current year, I'd report the sole proprietorship's EIN on Form 5500-EZ, Line 2b and disclose the change on 4b.

It really isn't all that unusual to report an EIN change on Form 5500-EZ. If a sole proprietorship or partnership incorporates, the new corporation must apply for an EIN of its own; it can't use the predecessor entity's EIN. You have the same business (but in a different legal form), the same owner(s), and the same self-employment plan, but the plan sponsor now has a different EIN.

[J Simmons]

I agree with Lori's suggestion. I know of several situations where that approach was taken without so much as a hiccup from the DoL.

[Guest bflmb]

A sole proprietorship had a EIN. The sole proprietor incorporated to a S corp a single owner/employee, which was allocated a different EIN.

There was an individual 401K through the sole proprietor. Now that the owner has different EIN, does the S corp owner need to open a new solo-401k plan with the new EIN.

Or can the 401k opened with sole proprietor EIN be used also for solo-401k, with the requirement that the change be notified in the 5500Ez:

S corp EIN in line 2B.

Sole-proprietor EIN in line 4B.

Thanks,

Rahm

[WDIK]

The plan should be amended to indicate the new sponsor and identification number.

Then follow Lori's earlier suggestion with respect to the Form 5500-EZ.