Entities with EINs Must Update Responsible Party Information
A responsible party is defined as “the individual or entity who controls, manages, or directs [an] entity and the disposition of its funds and assets.” In most cases, this will be the CEO or CFO of an organization. Where two or more persons meet the definition of a responsible party, an organization can choose which person to list. Unless an EIN holder or applicant is a governmental entity, the IRS requires that the responsible party on file be an individual.
IRS Form 8822-B, Change of Address or Responsible Party — Business, is used to update an entity’s responsible party on the IRS’s records. IRS regulations require EIN holders to update responsible party information within 60 days of any change.
Beginning in August 2021, the IRS plans to send out approximately 100,000 letters to EIN holders where it appears the responsible party information on file may be outdated.
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