Reporting Change of Address or Responsible Party with the IRS
Beginning with 2014, it is mandatory that businesses report changes in responsible parties to the IRS. For non-publicly traded entities, a responsible party is 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 or assets. For most small businesses, this is the primary owner of the entity.
Within 60 days of a change in responsible parties, the entity must file form 8822-B, Change of Address or Responsible Party-Business with the IRS to report the change. Although there are no direct penalties for failing to file the form, a failure to receive a notice of deficiency or demand for tax, the penalties and interest will continue to accrue, even though the responsible party fails to receive the notices.
All businesses with EINs should review their SS-4, Application for Employer Identification Number, and file Form 8822-B with the IRS to update any changes in business addresses and responsible parties, as soon as possible. Here is the link to IRS form 8822-B http://www.irs.gov/pub/irs-pdf/f8822b.pdf.
If you have any questions, please contact Ken McLaughlin at 630-230-8434.
Written By: Bob Kovanic, MBA, CPA, Padgett Business Services
NOTE: This publication should not be regarded as legal advice or legal opinion. The content is intended for general informational purposes only. If you have any concerns regarding anything in this publication you may contact your own attorney, CPA or our law office at 630-230-8434, website www.ma-lawpc.com.
Domestic Violence in the Workplace
Unfortunately it sometimes takes a tragedy such as the recent shooting of Nadia Ezaldein at Nordstrom store by her ex-boyfriend, Marcus Dee, to make us as business owners think about what we could have done to prevent this from happening in our place of business. Fortunately, the State of Illinois has 2 little known laws in place that can offer both employees and employers some added protection from domestic violence and abuse in the workplace. These are the Victims’ Economic Security and Safety Act (VESSA) and the Workplace Violence Prevention Act.
Starting a Business as a Non-Citizen, Part lll (Work Visas for USA)
This is the third installment of a series discussing the options for non-citizen business investors to obtain Work Visas in the USA. The following are a list of the least desirable visa options a non-citizen may apply for in order to work for the company that he or she built:
Temporary Visas (Less than one year duration)
B-1:The B-1 visa temporarily allows non-citizens to participate, and get paid, for activities of a “commercial or professional nature.” While the United States Citizenship and Immigration Service (“USCIS”) does not limit the definition of “commercial or professional nature,” managing a business would be an accepted activity under B-1 so long as the applicant can show that the purpose of the trip is legitimate, the stay is for a limited period of time, there are adequate funds to cover the trip, and the applicant has a residence outside the United States that they do not intend to abandon. However, with a B-1 visa and extension good for only one year in the United States, this visa is a temporary solution that would not be ideal for a potential business owner or investor looking to build a business. Read more…
Starting a Business as a Non-Citizen, Part ll (Work Visas for USA)
This is the second installment of a series discussing the options for non-citizen business investors to obtain work visas for the USA. The following are a list of the most recommended visa options a non-citizen may apply for in order to work for the company he or she built:
Temporary Visas (More than one year duration)
E-2 (“Treaty Investor”): The E-2 visa is the ideal visa for a foreign national looking to start a business in the United States. The E-2 visa is available to non-citizens that invest substantial capital into a bona-fide enterprise in the United States. Substantial capital is a sufficient investment to ensure success. Also, a bona-fide enterprise is one that is operating and possesses an employer identification number, tax returns, financial statements, or other information that shows the legitimacy of the business. The E-2 visa allows the holder to work for their company, and spouses may also work after getting special authorization from the USCIS. This visa is initially granted in two year increments and possesses no maximum number for renewals. However, the E-2 visa is only available to nationals of a country that possess a certain treaty with the United States. The list of treaty countries is located on the United States Departments of State website at http://travel.state.gov/content/visas/english/fees/treaty.html. As of 2014, India, China, and Mexico do not possess such treaties with the United States. Read more…
Relief for Late S-Election Under Rev. Proc. 2013-30
In August 2013, the IRS issued Rev. Proc. 2013-30 that consolidates and simplifies rules provided previously. Taxpayers now have 3 years and 75 days from the date the S-election was originally intended to be effective to file a late S-election. No use user fee will apply. The election will be effective as of that intended date. To qualify for relief, the corporation must meet the following:
- The S-election would have been effective had the Form 2553 been submitted timely.
- The failure to qualify as an S-corporation was solely because the election was not submitted timely.
- The corporation has reasonable cause for its failure to file timely and acted diligently to correct the error.