IRS Updates Instructions To Application For Employer Identification Number

In an announcement that was overshadowed by the significant tax legislation enacted in December, 2017, the IRS has released updated instructions for its Form SS-4, Application for Employer Identification Number (EIN). This application must now disclose an individual as the "responsible person", i.e., the person listed in the application who owns or controls, or exercises ultimate effective control over, the applicant. An exception is made for government-related entities.

By way of background, an EIN is a federal tax identification number used by business entities, estates and certain trusts to file federal tax returns and to make certain tax elections (such as those that relate to tax classification). For the most part, banks, securities brokers and other financial institutions require that applicants for accounts provide an EIN so that proper tax reporting can take place.