IRS Change Letters
By asking CorpNet to help you with your IRS change letter, you can rest assured the process will be handled correctly and quickly. We’ll assist you in identifying the process for your required business changes and we’ll take care of the paperwork for you.
Some business changes require notifying the IRS. It’s important to keep the IRS up to date because failure to do so could result in improper tax classification, important tax filing information going to the wrong address or wrong person, fines, penalties, or worse. Fortunately, CorpNet is here to help you prepare the necessary documentation!
What Types of Changes Does the IRS Need to Know About?
If you make major changes to your business entity, you must send a letter or submit a specific form to inform the IRS. These changes may include:
- Business name change
- Change of business address
- Change in the responsible party for your business
- Converting from one type of business entity to another (e.g., changing from an LLC to a C corporation)
- Domesticating your business entity to a different state (i.e., changing its state of registration)
- Change in the number of LLC members (e.g., if a Single-Member LLC adds members and becomes a Multi-Member LLC)
- Change in current tax classification (e.g., a Multi-Member LLC electing to be taxed as a C Corporation rather than a Partnership)
When Do You Need to Submit an IRS Change Letter?
Whenever you make a significant change, it’s critical to let the IRS know as soon as possible. IRS requirements vary depending on the type of change. For example:
- A change in responsible party must be reported within 60 days.
- Partnerships and Corporations, if filing taxes for the current year, can check the name change box or address change box (or both) on their tax return.
- Changes involving obtaining a new EIN must be done before the business opens new bank accounts, processes payroll, and carries out other business activities that require a valid federal tax identification number.
Processing times can also vary, so don’t delay in preparing your documentation.
How Can CorpNet Help?
Our business filing specialists will help you prepare your IRS change letters and forms and provide you with detailed instructions on how to submit them to the IRS. We’ll also help you with new EIN requests and any state forms and filings required when you make changes to your business.
FAQs About Changing Your Business Information With the IRS
When changing my business address or rehoming my business entity to a different state, does the IRS require the same method of notification?
No. When a business changes its address within the same state, CorpNet prepares IRS Form 8822-B for the company.
In the case of domestication (moving a business’s registration to a different home state), there are two options.
- CorpNet can apply to obtain a new EIN to establish that the entity has moved to a different state and draft a cancellation letter the business can submit to the IRS to request making their existing EIN inactive after the new EIN is active.
- We can prepare an IRS change letter to inform the IRS of all the changes the company has made. We then send detailed instructions on what additional information (such as the owner’s Social Security Number) the client should add and how they can submit the document to the IRS.
How do you notify the IRS if we switch from one business entity type to another?
It can depend on the business structure, but generally, the options are the same as those for domesticating an entity to a different state.
What kind of notification is required when changing from a Single-Member LLC to a Multi-Member LLC?
Changing from a Single-Member LLC (which is taxed as a disregarded entity) to a Multi-Member LLC (which is taxed as a Partnership), we can do one of two things based on our client’s preference:
- We can prepare Form 8832 to notify the IRS of the change in tax classification. We then provide specific instructions for any additional information our client should include and how they can submit the documentation to the IRS.
- We can apply to obtain a new EIN for the Multi-Member LLC and prepare a cancellation letter the business can submit to the IRS to make their Single-Member LLC’s EIN inactive.
Is it true that the same form is required to change a business address or responsible party?
Yes. Either of those changes require submitting Form 8822-B to the IRS. CorpNet can assist you in preparing your form, saving you valuable time. We complete most of the form for you and then provide detailed instructions on what additional information you must add (e.g., a responsible party’s Social Security Number) and how to submit it to the IRS.
What are the ways I can notify the IRS if I change my business name?
It depends on the type of business entity. For example, Sole Proprietorships and Single-Member LLCs taxed as disregarded entities must send a letter to the IRS. Partnerships and Corporations may mark the appropriate name change box on their income tax return if filing for the current year. If they’ve already filed their current year’s tax return, they must send a change letter to the IRS to notify them of the change in the business name.
What state-required activities related to business changes can CorpNet handle?
Besides helping you inform the IRS, we also help prepare and file state forms and documents associated with making changes to your business:
- Articles of Amendment to notify the state of significant changes, such as business name, address, registered agent, member or director information, number of authorized shares, and types of business activities the company engages in.
- Articles of Conversion to convert from one business entity type (if the state allows it), or Articles of Dissolution to end the existing entity and Articles of Incorporation or Organization to form a new entity (if the state doesn’t recognize conversions)
- Articles of Domestication to change the business entity’s state of registration (and obtain a Certificate of Good Standing from the original home state), plus Articles of Dissolution to end the entity’s existence in the original home state
- Paperwork to change your Registered Agent
- New or updated Beneficial Ownership Information Reports
- Initial Reports (if required by the state)
