IRS Form 8822-B walkthrough - ARCHIVED COPY - READ COMMENTS ONLY
Вставка
- Опубліковано 14 жов 2024
- This is an older copy of the video we produced on IRS Form 8822-B. If you came to this video from another link, I apologize for the inconvenience.
Please feel free to review the comments to see if any of them are of benefit to you. To watch the most up to date version of this video, please check out this link instead: • IRS Form 8822-B walkth...
Please feel free to check out our article, where we've written step by step instructions to help you walk through this tax form! www.teachmepersonalfinance.com/irs-form-8822-b-instructions/
Thank you for this walkthrough. Can you explain what we should write in the "Title" section? Our title as is Dr, Ms, Mr, etc? Thank you!
You should write in the title that you feel appropriate to your situation. The IRS should process your form in the same manner, regardless of what title you enter.
We are looking to add owners to an LLC, does this form let that happen when there are four or more owners while retaining the original owner?
I am changing my responsble party in the single member llc. Should I put the responsible party's SS separately? The business is still supposed to keep the same old EIN so, should I put the responsible party's SS# or the business EIN for #9? Also, do I need any other document showing the responsible party name change since its a single member llc? Like state filing or the by laws?
Do you leave the responsible party lines empty if you arent changing responsible parties?
You can leave the responsible party lines (Lines 8 & 9) empty if you are not changing them. If you wish, you may also enter 'N/A'
Hi, If I add my husband to my brand new LLC registered a month ago in California so do I need to only file and submit this for 8822-B to IRS?
If you remain the responsible party for the LLC, then you don't need to file Form 8822-B. You would only need to file this form if your husband is going to take over those responsibilities for you.
@@teachmepersonalfinance2169 Thanks for advise, I already registered the change and added him to my LLC as the partner with California Secretary of state so since I have submitted my form SS-4 to IRS, do we need to submit another SS-4 for my husband as well? or please advise how we need to inform IRS than he added to partnership in our LLC business and also we always file as a joint for our taxes
@@rjalaliamplify-bio You would not need to file another SS-4, as your EIN should cover the company, not just one person. If you remain the responsible party, you probably don't need to file Form 8822-B. In your situation, the LLC is likely to be considered a disregarded entity (for tax purposes). You probably would be best off by hiring an accountant to help you file your business tax returns, as well as your individual income tax returns. Your accountant would help you make sure your business is in order, and you would be better able to focus on growing your business.
Thank you very much for this valuable video. Do you know how to remove DBA from EIN Letter.
I am not sure. I've seen some sources online, but I haven't been able to find an IRS reference that indicates how you would do this. It might be worth calling the IRS to see whether they would issue a new 147c letter without the DBA listed.
I took your advice and called the IRS. They said they can remove or make changes in DBA on phone. @@teachmepersonalfinance2169
If I fill out a form 8822-b will I be responsible from the date signed and moving forward or will I be responsible for the prior individuals tax documentation ?
This isn't an official IRS response, but I would make an educated guess that the IRS would not hold you personally responsible for extreme negligence or fraud committed by your predecessor. But if there are deficiencies that you have not corrected, then the IRS will hold you accountable for correcting those deficiencies on behalf of your business.
If you have any reason to be concerned, you should consider having a tax professional review your tax records to make sure they match up with your company's books.
If you find something and take active steps to correct it on your timeline, it will *always* work out better for you than if you wait for the IRS to find it and put you on their timeline.
love your channel thank you for the knowledge...i shall share
If I'm changing the responsible party and the business location of an unused LLC, would I check box 3 only? Or would I check box 1 as well?
If the change in responsible party impacts any tax returns, then you may consider checking Box 1. If you don't expect to file an income tax return, then perhaps not.
If I were in this position, I would probably consider checking Box 1, even if I had no near-term plans for actually filing tax returns under the LLC.
@@teachmepersonalfinance2169 thanks!
Thanks for your time. How do I know which of the first three boxes I should check? I'm a single member LLC and I'll be doing a solo 401k through Vanguard
Also, do I have to put my professional title?
@@DocShields84 As a single-member LLC, your default status is as an individual taxpayer (your single-member LLC is generally disregarded for tax purposes). So if you don't otherwise plan to file any of the tax returns in Box 1, then I wouldn't check that box.
The moment you create a solo 401k, you'll need to start filing IRS Form 5500-EZ, so check Box 2. If this is your first filing, then I would check Box 3 and enter your business address.
You can put your professional title if you wish, but I don't think it's necessary.
Thanks for the video! Is this form used when moving the business address/state registration of an LLC from one state to another (ie. taking business from NV to NM)? I plan to dissolve the LLC in NV.
The tax form instructions don't really cover the state-specific aspects of a business registration (dissolving one entity in a state to reform it in another). However, I believe that if you intend to keep the same employer identification number (Line 4b), then you would use this form. If you intend to dissolve everything and apply for a new EIN, you would not.
@@teachmepersonalfinance2169 Hello, I have similar case. I dissolved mine LLC from New Mexico and Opened new one in Florida. Do I need to apply for new EIN or can I use the old one?
If the answer is that I need to apply for a new one, how to cancel the prior one? Thank you for your help
@irlandamedina3954 I can't really tell you what you should or shouldn't do with an EIN (this starts to venture into legal advice territory, which I am not qualified to offer).I would say that if you actually dissolved one business in one state, and started a new business in another state, you generally could make the case to apply for a new EIN. Or you could make the case that you're keeping the old EIN and that you don't need to apply for a new one.
You may consider looking at Form SS-4 to see if you need to apply for a new EIN, but here is what the Form SS-4 instructions say:
*File only one Form SS-4.* Generally, a sole proprietor should file only one Form SS-4 and needs only one EIN, regardless of the number of businesses operated as a sole proprietorship or trade names under which a business operates.
IRS Form SS-4, Application for Employer Identification Number
Article: www.teachmepersonalfinance.com/form-ss-4-instructions/
Video: ua-cam.com/video/eILewlSy9OU/v-deo.html
I am updating my LLC address from my personal home to a virtual address. Am I saying I'm changing the physical location as well or just the mailing? My goal is to avoid using my personal address on any documents
The Internal Revenue Manual instructs employees to maintain both a mailing address and physical address location for each taxpayer. I don't see any guidance on how the IRS processes virtual addresses, but I can imagine that it would be similar to a P.O. Box, if the employee recognizes it as a virtual address.
If you don't update the physical location, then the IRS will probably keep your home address on file. I cannot recommend that you list the virtual address as your physical address, but I also don't really know if the IRS would notice, or if they would update your business master file (BMF) with the virtual address.
If we have sold our business to another business owner, therefore do not have another "business address" to update, do we use this form to update our business address to our residential address?
If you sold a business to another owner, then that person is responsible for filing Form 8822-B, to change the responsible party, so that the IRS no longer sees you as the responsible party.
If you have another business that you were operating out of the old location, you can use Form 8822-B to change the location of business. But you should not be responsible for changing the address of the business that you sold.
After submitting form do you receive anything back from IRS confirming that the change has taken place? I will be using it for change of responsible party as I sold my business and new owner is taking over LLC. Will new owner receive documentation stating they are now owner of LLC?
The new owner will likely receive a mailed letter from the IRS stating that the change of responsible party has been processed. However, the IRS states that you should expect at least 4 to 6 weeks for this to be processed. You may follow up after the 6 week mark just to make sure that the IRS has received it and is processing it.
I am buying out my partner, an S Corp. I have recently set up a Trust for myself. Can the new responsible party be a trust and not me as an individual
I don't see a way to be able to do this. I'll explain my rationale below, so that you might have some context to discuss with another tax expert.
When it comes to who can be a responsible party, the Form 8822-B instructions defer to Form SS-4. Specifically, the instructions state, "See Form SS-4, Application for Employer Identification Number, and its instructions, for guidance about who can be a “responsible party” for line 8 and which identification number to enter for line 9.
The Form SS-4 instructions state: "Unless the applicant is a government entity, the responsible party must be an individual (that is, a natural person), not an entity." Further, the instructions specify "For trusts, the responsible party is a grantor, owner, or trustor."
In other words, your trust could own the S-corporation, but as grantor, owner, or trustee, you would still remain the responsible party.
If you find guidance elsewhere, please let me know so I can self-correct.
Thank you for sharing information in detail. Can we submit our form by email?
Based on what I've seen on the IRS website, I do not believe that you can submit IRS Form 8822-B via email.
Regarding responsible parties you say, “if you are changing the …” fill this section out, but you don’t say if regarding the addresses. My question is, if no addresses are being changed (only responsible parties), do OLD/NEW mailing addresses or business location need to be filled out?
I imagine that you could probably not bother with completing of those blocks. However, I always try to envision someone trying to process the form based upon the information provided. To eliminate any possibility of confusion, I always recommend entering your address in the NEW address field, even if you're not changing addresses.
Hi, I'm confused about the difference between the new mailing address and business location. I just need to add a suite number to my business address. Which field do I enter the new address in 6 or 7?
I would enter the old address (without suite number) in Line 6, then the new address (with suite number) in Line 7.
thank you@@teachmepersonalfinance2169
I am updating our business location but not the mailing address. Do I leave sections 5 and 6 blank?
To avoid confusion, I would enter your mailing address in one of the fields (field 6, probably). I haven't found much in the way of specifics, but if I were processing your form, I would have one less question if I saw your current mailing address in Line 6.
i wanna change the ownership percentage. how do i indicate that i want the 60% and my husband to be 40%?
I'm not sure how you would change the ownership percentage of your business, as I don't know what the corporate structure of your business is, or which state you are in.
However, you would not do that on this form.
For box 4B - Is this the old or new EIN? For new ownership, we are changing the EIN, do I include the new EIN anywhere on this form?
You would put the old EIN in Line 4B. For the new ownership, you would put the new responsible party's name on Line 8, and the new EIN on Line 9.
im so confused on this topic because according to IRS I need to apply for new EIN if I took over a business, but this form says change of responsible party. do I apply for new EIN or submit this form?
I'm not sure that I've seen anyone encounter this problem before. From what I've read, if a business changes its responsible party, then the business must file IRS Form 8822-B within 60 days, but it keeps the existing EIN.
The EIN stays with the business, and is not attached to any individual. It might be worth checking on this with the IRS again before filing this form, but I'd probably submit the form with the business' current EIN so that I did not violate the 60-day timeline.
My current LLC does not have an EIN. I was thinking of updating my address then applying to obtain my EIN, should I just leave it blank? my LLC is registered, just no EIN.
It doesn't appear that the form instructions or the Internal Revenue Manual address this specifically. The closest is this: The form instructions state that this form is voluntary for business entities without an EIN, but mandatory for those with one.
With that said, you could obtain an EIN fairly quickly, either by filing Form SS-4, or going through the IRS website.
www.teachmepersonalfinance.com/form-ss-4-instructions/
Where would I put a virtual address ? I had not knowing put my home address as my business address.
I don't think the form instructions address this directly. But here is what the form instructions say with regards to people with “In Care of” Address (a close approximation):
If you receive your mail in care of a third party (such as an accountant or attorney), enter “C/O” followed by the third party’s name and street address or P.O. Box. You should be able to confirm this with the virtual address service provider.
Does the new responsible party sign or the old owner?
The new responsible party should sign. However, that responsible party needs to be an officer, owner, general partner or LLC
member manager, plan administrator, fiduciary, or an authorized representative, who is authorized in writing by the business. According to the instructions for Form SS-4, a responsible party is defined as an individual, except for government entities.
www.teachmepersonalfinance.com/form-ss-4-instructions/
How can i send this form to irs as m not us resident?
You can still use IRS Form 8822-B to notify the IRS of your change in address, even if you're not a US resident. If you're located outside the United States, you would include your country's name, county or province name, and foreign postal code in your address fields.
@teachmepersonalfinance2169 sir how can i send this form
To irs cause they don’t receive it through fax
@@AbhishekSharma-mc7io You would have to mail the form. If your old business was outside the United States, you'll need to mail your completed form to:
Internal Revenue Service
Ogden, UT 84201-0023
Do I use this form if I want to switch my EIN from a Sole Prop to an LLC?
Probably not. According to IRS Publication 1635, Understanding Your EIN, "if you are a sole proprietor who conducts business as a limited liability company (LLC), you do not need a separate EIN for the LLC, unless you are required to file employment or excise tax returns. An LLC owned by one individual is automatically treated as a sole proprietorship for federal income tax purposes (referred to as an entity to be disregarded as separate from its owner). Report the business activities of the LLC on your Form 1040 using a Schedule C, Schedule C-EZ or Schedule F."
There are certain circumstances where you would need to apply for a new EIN: bankruptcy, changing to a partnership, establishing a pension, profit-sharing, or retirement plan, or incorporating (becoming an S-corp or C-corp).
In other words, if you're operating your LLC in the exact same manner as you operated your sole proprietorship, then you might not need to file anything. Here's a link to IRS Publication 1635: www.irs.gov/pub/irs-pdf/p1635.pdf.
@@TomSlatenOS My reading on this is that you should, for two reasons. One, as the seller, I would do everything to ensure that my name is off the books in every way after the sale closes. This allows you to do that. Two, the form instructions state, "If you are an entity with an EIN and your responsible party has changed, use of this form is mandatory." Your buyer can always change or apply for EIN at a later point, but may change their mind if they later decide they do not need to do so. But filing this form will help ensure that you're off the record going forward, and that the IRS knows who to notify for tax correspondence.
How do you get the new address document.
I'm not sure what you mean. Do you mean "How do you get a copy of this form?" Or are you referring to a different document?
@@teachmepersonalfinance2169 yes that's what I'm asking.
You can get any tax form from the IRS website. For this tax form, or any form that I've written an article about, I've attached the latest version to my article: www.teachmepersonalfinance.com/irs-form-8822-b-instructions/
Simply hit the 'Get the Form!' button at the top of the article, and it will automatically take you to the form that you can download.
What if the responsibly part is deceased
You would enter the new responsible party's name in Line 8, and their tax ID number in Line 9.