1099-R EIN

[Denice England]

I have a client who has an EIN specifically for the plan.  We have had the plan for years and have had the EIN for years.  We have always used the EIN on the Form 5500 and the 1099-Rs.  Several years ago, the plan name changed.  We have continued using the same EIN and have never had any problems - except for this year.  The plan is terminating so I prepared 1099-R forms to reflect the distributions.  Taxes were withheld on the cash distributions and remitted using this EIN.  Now, when participants are e-filing their individual returns, the EIN errors out because the name of the plan does not correspond with the original name of the plan.  Has anyone ever had this problem?  I just need to amend/correct the name associated with the EIN.  I have searched the IRS website and cannot find how to do that.  Any ideas?

[Bird]

I'm not sure why you would have used that EIN on the 5500; that is supposed to be the sponsor's EIN.  Setting that aside, there is a procedure/instructions for changing info on a filed ein application; see below.  I'm not sure if it is too late for that though; maybe worth a try.  I think you could just say "sorry you can't efile" and a paper filing would not have that problem.  I guess if the taxes were accepted you don't have the problem of the ein being deactivated which is whole 'nother problem.

http://www.employeridentificationnumber.net/how-to-correct-information-on-a-filed-ein-application.html

[Larry Starr]

11 hours ago, Denice England said:

I have a client who has an EIN specifically for the plan.  We have had the plan for years and have had the EIN for years.  We have always used the EIN on the Form 5500 and the 1099-Rs.  Several years ago, the plan name changed.  We have continued using the same EIN and have never had any problems - except for this year.  The plan is terminating so I prepared 1099-R forms to reflect the distributions.  Taxes were withheld on the cash distributions and remitted using this EIN.  Now, when participants are e-filing their individual returns, the EIN errors out because the name of the plan does not correspond with the original name of the plan.  Has anyone ever had this problem?  I just need to amend/correct the name associated with the EIN.  I have searched the IRS website and cannot find how to do that.  Any ideas?

You don't really have an EIN for the plan, you have a Trust ID Number for the trust (yes, it looks the same format).  The employer's EIN  is what is supposed to be used on the 5500; the TIN is used just for holding assets and reporting distributions from the trust (unless you are on a platform; then the platform uses ITS EIN to report the distributions).  There is a process for informing the IRS of a name change associated with an EIN.  In this case, you should use the employer EIN and notify the change via the boxes on top of the 5500.  I'll try to remember to have my staff give me the info for how you get an EIN assigned to a different name tomorrow and post it.

[Denice England]

Thank you so much Larry and Bird.  I appreciate the help!

[thepensionmaven]

Larry,  I would like to see your letter.  I have been corresponding with IRS on a trust EIN and the EIN for the Sponsor, up and back for over 3 months.  Apparently the computer is not programmed to review Box 4 on Form 5500-SF.

[Larry Starr]

1 minute ago, thepensionmaven said:

Larry,  I would like to see your letter.  I have been corresponding with IRS on a trust EIN and the EIN for the Sponsor, up and back for over 3 months.  Apparently the computer is not programmed to review Box 4 on Form 5500-SF.

Your timing is perfect; about 2 minutes ago I asked my staff person for the instructions.  Will post them shortly.

[Larry Starr]

On 4/8/2020 at 8:57 PM, Larry Starr said:

You don't really have an EIN for the plan, you have a Trust ID Number for the trust (yes, it looks the same format).  The employer's EIN  is what is supposed to be used on the 5500; the TIN is used just for holding assets and reporting distributions from the trust (unless you are on a platform; then the platform uses ITS EIN to report the distributions).  There is a process for informing the IRS of a name change associated with an EIN.  In this case, you should use the employer EIN and notify the change via the boxes on top of the 5500.  I'll try to remember to have my staff give me the info for how you get an EIN assigned to a different name tomorrow and post it.

Attached is a sample letter that we fax to two IRS departments to make changes on their master records.  It has been modified to take out the specific names and numbers of the client.  Meredith (who does this in my office) says it has been a while since she had to do one and won't vouch that the fax numbers are still good, but hopes they are.  But it gives you an idea of how to do it, and the good news is that we do get the IRS confirmation from them (as you can see in the fact that we earlier had changed the name before and included the IRS letter acknowledging that prior action).  Let me know if anyone has any questions.

FAXCOVR IRS Entity Name.pdf

[Bird]

This is what we use; some of us are short-winded ?.  We prepare it for the client to sign and fax in.  I gave the link to the IRS website above with fax numbers.

Dear IRS:
Please be advised of the following change of address for an existing tax ID number:
Tax ID number:        xx-xxxxxx
Name:                        XYZg, Inc. Profit Sharing Plan
New address:          xx Avenue
                                   City, State, ZIP

Please adjust your records accordingly.

Sincerely,
(Trustee)