Level 11

Question

IRS Changing EIN's

Forum|Forum|4 years ago
December 7, 2021
6 replies
18 views

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?

ProSeries Professional

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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. 😉

Slava Ukraini!

dascpaAuthor

Level 11

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:

• A trust changes to an estate

• A living (inter vivos) trust changes to a testamentary trust

• The revocable trust changes to an irrevocable trust

Just-Lisa-Now-

Intuit Community Champion

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.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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the IRS will begin sending letters to approximately 100,000 EIN holders where it appears the responsible party is outdated"...re: data security....just my opinion...

dascpaAuthor

Level 11

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.

dascpaAuthor

Level 11

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.

HumanKind... Be Both

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.

Don't yell at us; we're volunteers

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?

Slava Ukraini!

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...

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