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Frequently Asked Tax Questions And Answers
Keyword: Tax Identification Number
7.1 Child Care Credit/Other Credits : Child and Dependent Care Credit & Flexible Benefit Plans
As a child care center, are we required to give out tax statements
to any of our parents who request one? Can we refuse to give a tax statement
to someone who has a past due balance with us?
As a care provider, you are required to give your correct name, address,
and Taxpayer Identification Number (TIN) to customers who paid for child care
services during the year. A valid TIN can be the Employer Identification Number
(EIN) of the business or the social security number of a sole proprietor. Form W-10 (PDF), Dependent Care Provider's Identification
and Certification, or a similar statement may be used for such purposes.
A care provider who does not give the customer a correct TIN is subject
to a penalty of $50 for each failure unless the failure is due to reasonable
cause and not willful neglect. The failure of a customer to pay a bill in
full would not normally constitute reasonable cause. The penalty does not
apply to qualified tax exempt care providers.
When the care provider refuses to give the identifying information, the
taxpayer can still claim the credit and is instructed to provide whatever
information is available about the provider (such as name and address) on
the form used to claim the credit Form 2441 (PDF), Child
and Dependent Care Expenses, or Form 1040A, Schedule 2 (PDF), Child
and Dependent Care Expenses for Form 1040A Filers). The taxpayer should
write "see page 2" in the columns calling for the missing information. He/she
would write at the bottom of page 2 that the provider refused to give the
requested information. This statement will show that the taxpayer used due
diligence in trying to secure and furnish the necessary information.
References:
12.1 Small Business/Self-Employed/Other Business : Entities: Sole Proprietor, Partnership, Limited Liability Company/Partnership (LLC/LLP), Corporation, Subchapter S Corporation
I recently formed a limited liability company (LLC). The LLC has no employees.
Do I need a separate Federal Tax ID number for the LLC?
No, you will not need a separate Federal Tax ID number for the LLC if you are the
sole owner of the LLC and the LLC has no, employees. If you are not the sole owner
of the LLC or if the LLC has employees, you will need a separate Federal Tax ID number
for the LLC.
References:
- Publication 1635 (PDF), Understanding your EIN - Employer
identification Number - IRS
- Form SS-4 (PDF), Application for Employer
Identification Number
- Form 8832 (PDF), Entity Classification
Election
12.5 Small Business/Self-Employed/Other Business : Form SS–4 & Employer Identification Number (EIN)
Is an employer ID number the same as a tax ID number?
Yes, an employer identification number, or EIN, is also known as a taxpayer identification
number, or TIN. A sole proprietorship that has no employees and files no excise or
pension tax returns is the only business that does not need an employer identification
number. In this instance, the sole proprietor uses his or her social security number
as the taxpayer identification number.
References:
Is an employer identification number (EIN) required if the husband and wife
are the only persons working in the business?
If both of you carry on a business together and share in the profits and losses,
you are a partnership and each would receive a Form 1065, Schedule K-1 (PDF) that
is important for determining your self-employment income. If you work for your spouse,
you should receive a Form W-2, showing taxes withheld and the owner spouse would claim
the wages paid to you as a deduction. Both a partnership and a sole proprietor with
an employee must have an EIN.
References:
Does a small company need a tax ID number?
A sole proprietor who does not have any employees and who does not file any excise
or pension plan tax returns is the only business person who does not need an employer
identification number. In this instance, the sole proprietor uses his or her social
security number as the taxpayer identification number.
References:
How do I apply for an employer identification number (EIN)?
By Telephone or Mail To obtain an EIN, you must complete Form SS-4 (PDF), Application for Employer Identification Number.
After you have completed the Form SS-4, you can get the EIN by mail, or by phone.
The instructions for Form SS-4 provide both an IRS service center address and a phone
number to apply under the Tele-TIN program.
Online You may also apply online. Once an EIN has been successfully
completed and submitted, an EIN will be issued. Use the attached linked for processing
instruction Apply
Online.
Through Your State OfficeSome states participate in a program
called the Fedstate Federal Employer Identification Number (EIN) project. This allows
you to apply directly from your state. Visit the attached link to determine if your
state take part in this program Fedstate
Program.
For more information, refer to Tax Topic 755, Employer Identification
Number (EIN) - How to Apply, or Publication 1635 (PDF), Understanding
Your EIN.
References:
I would like to submit Form SS-4, Application for Employer Identification
Number, by fax. What is the fax number?
You can find the fax telephone numbers by calling the IRS at 1-800-829-1040 or
refer to Tax Information for Business. This can be found on the IRS website www.irs.gov
under Businesses.
References:
Under what circumstances am I required to change my employer identification
number (EIN)?
If you already have an EIN, and the organization or ownership of your business
changes, you may need to apply for a new number. Some of the circumstances under which
a new number is required are as follows:
An existing business is purchased or inherited by an individual who will operate
it as a sole proprietorship
A sole proprietorship changes to a corporation or a partnership,
A partnership changes to a corporation or a sole proprietorship,
A corporation changes to a partnership or a sole proprietorship, or
An individual owner dies, and the estate takes over the business.
This list is not all inclusive. Please refer to the website www.irs.gov under Business,
then Employer ID Numbers.
References:
If I have an employer identification number (EIN) and do not need it, how
can I revoke the EIN?
If you do not need to retain your EIN and wish the EIN to be revoked, you can write
to the Entity Control Unit at the IRS Service Center where you would normally file
your returns and make that request. Make sure that either the President or other Principal
Officer signs the statement, if it is a corporation, or a managing member, if it is
a limited liability company, or a general partner, if it is a partnership.
References:
Do businesses have to obtain the taxpayer identification number (TIN) from
vendors and keep it somewhere on file?
In general, businesses are required to obtain the TIN from vendors if they are
required to file any return, document or other statement that calls for the taxpayer
identification numbers (TINs) of other taxpayers. Form W-9 (PDF), Request
for Taxpayer Identification Number and Certification, can be used to make the
request. The business should also maintain the verification of these numbers in their
records.
References:
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