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IRS Changing EIN's

dascpa
Level 9

I've had over ten clients receive letters from the IRS that the the IRS changed their EIN's to a new number.  In one case a trust now has three EIN's.  In all cases we did not request it, no ownership or any other changes have happened.  Totally baffled as to why.  Anybody out there have a clue?

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17 Replies 17
IRonMaN
Level 15

I haven't seen anything like that ------- yet.  Maybe the IRS saw that you were the preparer and decided to have some fun with you. πŸ˜‰


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dascpa
Level 9

Thanks for your confidence in me.  Every one is an entity.  This is weird and I predict future problems when we file a return and the IRS says nope, you never did, wrong EIN.  Late fees.  We've had every client try to call (none have gotten through) so letters were sent to the IRS.  I have no confidence.

It's tough enough keeping up with all the daily law and form changes, but this bureaucracy crap makes me want to retire.

 

 

BobKamman
Level 15

Are they all trusts?  IRS Pub 1635 has some examples of when a new EIN is needed, but it assumes the responsible party will apply.

You will need a new EIN if any of the following are true:

β€’ A trust changes to an estate

β€’ A living (inter vivos) trust changes to a testamentary trust

β€’ The revocable trust changes to an irrevocable trust

Just-Lisa-Now-
Level 15
Level 15
Wow, did IRS have some kind of data breach and is trying to cover their a$$?

I havent had any calls, and I dont think Ive seen this reported in any of the tax groups Im in, I'll keep an eye out though.

β™ͺβ™«β€’*Β¨*β€’.ΒΈΒΈβ™₯Lisaβ™₯ΒΈΒΈ.β€’*Β¨*β€’β™«β™ͺ
PATAX
Level 12

IR-2021-161 07/30/2021. "Starting in August, the IRS will begin sending letters to approximately 100,000 EIN holders where it appears the responsible party is outdated"...re: data security....just my opinion...

dascpa
Level 9

Thank you for this.  It may be it - but we've had no change in address, responsible party or anything.  I'm expecting a disaster down the road.

PATAX
Level 12

You're welcome.

BobKamman
Level 15

is there a letter number or notice number?  Are you sure these are from IRS?  I'm trying to figure out how this could be a scam, but if so, the scammers are smarter than I am.  

dascpa
Level 9

IRS Letter 6217C.

"We've completed a review of your account and determined the employer identification number (EIN) application information we have on file is no longer valid".

Again, no change in anything.  I've now got 12 clients with this.  I see posts on "Tax ProTalk" with other accountants getting the same letter.  It is a valid letter, but it would be better for them to ask for confirmation before assigning a new EIN.  That is where the problem lies.

 

 

abctax55
Level 15

O.M.G.... this could become an nightmare.  So far, none of my clients have received these.   My fingers are crossed.

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PATAX
Level 12

Just something else we have to worry about... Real nice.. If it is due to security concerns, wouldn't it be nice if the government would spend some of that money that they're passing around and hire the additional Personnel to go after these scammers and hacker losers... They need to throw the book at them, and maybe it'll set an example and discourage the other losers who like to hack and scam.... Sometimes Draconian punishment is necessary... Or maybe I'm just a mean person?... Just my opinion...

BobKamman
Level 15

What IRS says about that letter is not what you say it says:

What you need to do if you received Letter 6217C

  • If we confirmed we received your response to Letter 5263C or Letter 6042C, you do not need to take any action. We’ll contact you within 180 days if we have questions.
  • If we requested more information about your business, estate, or trust, provide the information requested in the timeframe provided on the letter.
  • If we notified you that the employer identification number (EIN) information on file is not correct, submit Form 8822-B, Change of Address or Responsible Party-Business.

https://www.irs.gov/individuals/understanding-your-letter-5263c-6042c-or-6217c 

dascpa
Level 9

Thanks but I disagree.  If it was only to submit form 8822-B that would be fine.  But in each case the IRS assigned a new EIN for the entity.

BobKamman
Level 15

I believe you -- as happens in many other cases, I don't believe what I read on the IRS website.  

qbteachmt
Level 15

Could it be fraud? The letter implies there was prior correspondence, such as, someone applied to change something, and that letter for notification had no response that it should not change, so now there is the follow up letter telling you a change has been made, and a follow up should be done to reiterate the original info.

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IRonMaN
Level 15

As a side note to this discussion, I had a client receive a notice saying they owed a few grand on a 941 they filed.  The problem is, the notice shows a different ID number than what the client has been using (and a DBA instead of the legal corp name) and used a mailing address he hasn't been at for a few years.  The weird thing is, the total tax agrees with the 941 filed for the client for the quarter in question, but none of the client's deposits followed the same trail to the new ID number.  Are we having fun yet?


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PATAX
Level 12

Hope that they do not receive a 1099 under that wrong number... Had that happen  before... A lot of Nikola Tesla Juniors out there... 😬Just my humble opinion...