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?
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.
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the IRS will begin sending letters to approximately 100,000 EIN holders where it appears the responsible party is outdated"...re: data security....just my opinion...
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.
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
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of your account and determined the employer identification number (EIN) application information we have on file is no longer valid".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.
O.M.G.... this could become an nightmare. So far, none of my clients have received these. My fingers are crossed.
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...
What IRS says about that letter is not what you say it says:
https://www.irs.gov/individuals/understanding-your-letter-5263c-6042c-or-6217c
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.
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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