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CCH® PAYROLL — 3/19/12

IRS proposes procedures to update EINs

The IRS has published proposed regulations on procedures for obtaining an employer identification number (EIN). Under current procedures, EIN applications often authorize an individual (a "nominee") to act on the applicant's behalf for purposes of obtaining the EIN. The nominee's authority, however, is often temporary and does not last beyond the

application process.

Consequently, the IRS revised the EIN application form, Form SS-4, to require disclosure of the EIN applicant's "responsible party" and that party's identifying number. This refers to the party who has control over the business, whether that be a corporate principal officer, a general partner, or the owner of a disregarded entity.

Under the proposed amendments to regulations under Code Sec. 6109, any person issued an EIN must provide the IRS with updated information in the manner specified by the IRS, including the name and taxpayer identification number of the responsible party.

Written or electronic comments and requests for a public hearing must be received by June 12, 2012. Submissions should be mailed to: CC:PA:LPD:PR (REG-135491-10), Room 5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, D.C. 20044, or may be hand-delivered Monday through Friday between the hours of 8:00 a.m. and 4:00 p.m. to CC:PA:LPD:PR (REG-135491-10), Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW., Washington, D.C. 20224, or sent electronically via the Federal eRulemaking Portal at http://www.regulations.gov. (Proposed Regulations, NPRM REG-135491-10, March 14, 2012.)

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