Letter from IRS saying 5500 EZ has wrong EIN

[Jim Chad]

I have filed a 5500 EZ for a Sole proprietor in 2012 and 2013 with the owner's social security number for sponsor's EIN. Yesterday the client received a letter from the IRS saying that the 2013 had the wrong EIN. They stated that the form had the owner's social security number and gave a number that they said was the correct one. The owner has no idea what this number is or where it came from.

Does anyone have any suggestions?

[Lou S.]

A 5500 should not be filed with an SSN, you need an employer identification number (EIN). If the Plan Sponsor did not have one, one should have been applied for with Form SS-4 for the purpose of filing the Form 5500 series.

[Bird]

Agreed that an EIN is needed. I just explained this to someone so if anyone else is looking for proof, see text below that I lifted from an e-mail. Maybe the IRS assigned one? That's a little scary but the only explanation I can think of.

Correct, there is no reason to have a business TIN except for the fact that the business is sponsoring a plan; from page 3 of the SS-4 instructions (my emphasis):

Sole proprietor. Check this box if you file Schedule C, C-EZ, or F (Form 1040)

and have a qualified plan

, or are required to file excise, employment, alcohol, tobacco, or firearms returns, or are a payer of gambling winnings. Enter your SSN (or ITIN) in the space provided. If you are a nonresident alien with no effectively connected income from sources within the United States, you do not need to enter an SSN or ITIN.

...also instructions for Line D of the C-EZ say (again my emphasis):
Line D

Enter on line D the employer identification number (EIN) that was issued to you and in your name as a sole proprietor. If you are filing Form 1041, enter the EIN issued to the estate or trust. Do not enter your SSN. Do not enter another taxpayer’s EIN (for example, from any Forms 1099-MISC that you received). If you are the sole owner of a limited liability company (LLC), do not enter on line D the EIN issued to the LLC, if any. If you do not have an EIN, leave line D blank.

You need an EIN only if you have a qualified retirement plan or are required to file an employment, excise, alcohol, tobacco, or firearms tax return, are a payer of gambling winnings, or are filing Form 1041 for an estate or trust. If you need an EIN, see the Instructions for...