Here is a good example of why it is important to consult with your tax professional for tax preparation services and to meet periodically to discuss tax planning and tax compliance.
Talk about stealth operations, the IRS had not done much to publicize this requirement. Businesses must file Form 8822-B to notify the IRS if the business has changed its mailing address, its business location (if different from mailing address), or the identity of its responsible party.
Who is a responsible party? For business entities not traded on a public exchange or not registered with the SEC, the responsible party is defined as “the person who has a level of control over, or entitlement to, the funds or assets in the entity that, as a practical matter, enables the individual, directly or indirectly, to control, manage, or direct the entity and the disposition of its funds and assets. The ability to fund the entity or the entitlement to the property of the entity alone, however, without any corresponding authority to control, manage, or direct the entity (such as in the case of a minor child beneficiary), does not cause the individual to be a responsible person.”
This form is to be signed by “an officer, owner, general partner or LLC member manager, plan administrator, fiduciary, or an authorized representative. An officer is the president, vice president, treasurer chief accounting officer, etc.” Just love those “etc.” in IRS announcements. Now that is guidance!
If you have changed your business location or mailing address or have changed who in your company is responsible for dealings with the IRS, have mercy on that person and we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA officeto discuss your situation.
You can also schedule a consultation at Click Here. To learn more about various tax and business services, visit Tax Preparation Services and Small Business Accounting Services
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