As a newly added contractor to the company, I received a notice from the owner stating that a 2016 Form 940 filing is overdue. The owner claims that although the company is a disregarded entity LLC, the IRS has incorrectly classified its entity type as a 'general partnership.'

I cannot locate the old Form SS-4 used to apply for the Employer Identification Number (EIN). How can I determine the company's true nature in the eyes of the IRS? Additionally, I know there is a federal form that needs to be completed to represent the company in IRS discussions or communications, but I cannot recall the name or number of that form. Any help would be greatly appreciated.

Key Steps to Verify Filing Status and Tax Classification

In response to the above issues, it is recommended to take the following measures to verify the company's filing status and tax classification:

  • Obtain IRS Account Records:You can obtain the company's tax records by submittingForm 4506-T(Request for Transcript of Tax Return) or by using theIRS Online Account(if applicable), which will show the entity type and filing history.
  • Confirm the Entity Type Associated with the EIN:Contact the IRS Business and Specialty Tax Line at 800-829-4933, provide the EIN, and the representative can inform you of the entity type recorded in the system. If an error is found, you can submit acorrected Form SS-4or useForm 8832(Entity Classification Election) to formally elect or correct the classification.
  • Check State-Level Filings:Check the LLC's formation documents with the Secretary of State or the state of incorporation to confirm its legal status, but note that the IRS federal tax classification may be independent of state-level records.

Federal Form Needed to Represent the Company

The form you are thinking of is likelyForm 2848(Power of Attorney and Declaration of Representative). This form allows you to designate a representative (such as yourself) to act on behalf of the company before the IRS for tax matters. After completing and signing it, you must submit it to the IRS to engage in formal communications.

Note: If the company is a disregarded entity (such as a single-member LLC), its tax matters are typically reported on the owner's individual return, but Form 940 (Employer's Annual Federal Unemployment Tax Return) is still filed under the company's EIN. Therefore, confirming the entity type under the EIN is crucial.

Recommendations for Handling the Overdue 2016 Form 940

If it is confirmed that the filing is overdue, you should file the Form 940 for that year as soon as possible and pay any penalties and interest that may apply. You can obtain the form and instructions from theIRS website. If the issue arises due to an IRS misclassification, you may include a letter explaining the situation and request an abatement of some penalties.

In summary, by following the above steps, you can clarify the company's true status in the eyes of the IRS and take appropriate action. If you still have questions, it is advisable to consult a tax professional.