Sole prop changes to LLC taxed as unincorporated partnership

EIN does NOT change. Plan name changes, and name of plan sponsor changes, but no change in EIN, nor is there any change to the Trust id#.

This doesn't call for filing an 8822-B, since neither the address nor the "responsible party" is changing. No SS-4, since Trust id # doesn't change.

The name change will be reflected on the 5500 form when filed.

Am I missing anything here? Client's attorney is telling client IRS needs to be notified of this. If so, how? Maybe when they file their tax return?

If the sole prop is the only member/owner of the LLC, then it is a disregarded entity still taxed as a sole prop.   To be taxed as a partnership there would have to be another member.  

In the first case I suppose the EIN wouldn't have to change, even though the LLC is a separate entity from the sole prop, because for federal tax purposes the LLC is ignored.  So plan is still sponsored by the sole prop.

If it is the latter, then I don't see how they can not get a new EIN.  For federal purposes the LLC is a partnership, which is a separate entity from a sole prop.

Clarification needed on what's going on. 

My apologies. It was a sole prop originally, but had previously changed to an unincorporated partnership. Then just changed to the LLC. We were informed that the EIN did not change when this change to the LLC took place.

OK.  I don't think you're missing anything.  Assuming the change from partnership to LLC does not require a new EIN (I don't know about this), then as far as IRS is concerned they have a partnership continuing to file a 1065, same entity, same EIN, just a change in name.  Same thing on the plan, the 5500 will still be under the same EIN, so there is no real change from the reporting side, other than the plan name, which you noted will be shown on the next 5500.

What would you tell the IRS, how would you do it (no form for this) and why would they care?

56 minutes ago, shERPA said:

OK.  I don't think you're missing anything.  Assuming the change from partnership to LLC does not require a new EIN (I don't know about this), then as far as IRS is concerned they have a partnership continuing to file a 1065, same entity, same EIN, just a change in name.  Same thing on the plan, the 5500 will still be under the same EIN, so there is no real change from the reporting side, other than the plan name, which you noted will be shown on the next 5500.

What would you tell the IRS, how would you do it (no form for this) and why would they care?

Agreed; 100%.

Thanks for the confirmation. I didn't think I was missing anything, but I've been wrong a time or two...

Not to jump on the bandwagon, but with respect to the Plan I don't see why the Client's attorney would say the IRS needs to be notified.Perhaps he/she is referring to change of name on 5500?  I note that my understanding is that the way plans are tracked via 5500 are the Employer TIN and the plan number, so I don't see any issue here at all.