New businesses have to file Form SS-4 to obtain an employer identification number, which is used in all the tax filings of that business. Prior practice permitted businesses to use a nominee as the “responsible person” named on line 7 of the form. In a little-noticed change, the IRS is now requiring the true responsible party to be listed.
Failure of the business to withhold and pay over income tax withholding and social security tax can result in personal liability for the responsible person.
Related
- IRS explains requirement
- Form SS-4 (PDF)
- Form SS-4 instructions (PDF)
