mrichman333 Posted April 11, 2014 Report Share Posted April 11, 2014 Ok, I have a contractor that has a bookkeeper that is his girlfriend and cannot keep records. The guy has about 5 EIN but she can not tell me the name of the Company that goes along with it. OR if it's a LLC or S-Corp. I was able to determine one EIN that he wants to use is for a S-Corp but he wants to use the number on a Schedule C I said this cannot be done. Am I correct? Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted April 11, 2014 Report Share Posted April 11, 2014 I know someone that was a Sch C, created a LLC but continued to use the LLC bank account as a personal bank account, 90% of the expenses were personal so I consulted with a CPA friend of mine and he concluded it was best to continue reporting on Sch C. Quote Link to comment Share on other sites More sharing options...
David1980 Posted April 11, 2014 Report Share Posted April 11, 2014 What'd they do last year? Is it possible to obtain a copy of the prior year return and file the same way? Or is it a new business for them? Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 11, 2014 Report Share Posted April 11, 2014 I didn't want to read past your first sentence. If he doesn't have employees, he doesn't need an EIN for the Sch C. Did he file payroll tax returns for the business, and if so, what EIN was used on those? Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted April 11, 2014 Author Report Share Posted April 11, 2014 It took me weeks the first time to get copies of his tax returns, finally got 2010 and 2011. The CPA he used, used his SS. But the guy want to stop using his SS on everything. He doesn't have employees wink wink. He does issue 1099MISC's. I used his SS on them. But he wants to use a EIN on them. So if I issue a 1099MISC with the EIN of a S-Corp and use that Number on a Sch.C will it be a problem? If I issue 1099MISC using the EIN and use his SS on the Sch.C will that cause problems? He agreed to start W-2ing people, put his girlfriend could not tell me anything about the EIN... like the name of the company it is connected to or which one I could use, so we never W-2 anyone. If it was a LLC I wouldn't worry because the IRS looks at a LLC as a disregarded entity and most LLC use a Sch.C anyway. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 11, 2014 Report Share Posted April 11, 2014 5 EIN's ??? Man, just knowing that would triple his fee. File an extension, then in May, go to his office and dig for the paperwork on those before you try to do anything on his return. On the clock, of course. During that visit you MIGHT be able to teach the girlfriend at least a few things to help. 4 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted April 11, 2014 Author Report Share Posted April 11, 2014 5 EIN's ??? Man, just knowing that would triple his fee. File an extension, then in May, go to his office and dig for the paperwork on those before you try to do anything on his return. On the clock, of course. During that visit you MIGHT be able to teach the girlfriend at least a few things to help. LOL I've been politely hinting to him that the girlfriend hasn't a clue. She has no Idea where any paper work is and cannot find the letters the IRS send when you first get your EIN Quote Link to comment Share on other sites More sharing options...
joanmcq Posted April 12, 2014 Report Share Posted April 12, 2014 Call the IRS. Or have the client call with you there. Should be able to figure it out Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 12, 2014 Report Share Posted April 12, 2014 Be aware that when you contact the IRS they will tell you that he can only have one EIN issued that his name and social security number is connected to. I personally ran into this last week when I tried to get an EIN for a different business venture of my own that is a consulting business involving evaluation of automotive educational programs. I always have to give my SS# to numerous schools and don't like doing so. The IRS said to use the same EIN that I have for my accounting and tax practice. I thought that a bit wierd but will follow suit. Quote Link to comment Share on other sites More sharing options...
michaelmars Posted April 12, 2014 Report Share Posted April 12, 2014 Be aware that when you contact the IRS they will tell you that he can only have one EIN issued that his name and social security number is connected to. I personally ran into this last week when I tried to get an EIN for a different business venture of my own that is a consulting business involving evaluation of automotive educational programs. I always have to give my SS# to numerous schools and don't like doing so. The IRS said to use the same EIN that I have for my accounting and tax practice. I thought that a bit wierd but will follow suit. don't believe everything you are told....do an online ss4 and get a separate ein. unless things changed recently...we have clients 4 or 5 eins. for various sch c's 1 Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted April 12, 2014 Author Report Share Posted April 12, 2014 Be aware that when you contact the IRS they will tell you that he can only have one EIN issued that his name and social security number is connected to. I personally ran into this last week when I tried to get an EIN for a different business venture of my own that is a consulting business involving evaluation of automotive educational programs. I always have to give my SS# to numerous schools and don't like doing so. The IRS said to use the same EIN that I have for my accounting and tax practice. I thought that a bit wierd but will follow suit. I was told that once also. But it it's a S-Corp and not a LLC then it should be a separate legal entity. Some of his numbers go back to the 80's Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted April 12, 2014 Author Report Share Posted April 12, 2014 Call the IRS. Or have the client call with you there. Should be able to figure it out I gave the girlfriend the number of the IRS and NJ. The thing is in NJ LLC and S-Corps are required to file a annual report and pay a $50 fee. If you don't pay they revoke the EIN in NJ and put your business name up for grabs. For S-Corps it's worse, you have to pay a minimum annual Tax of $500. If the business gets revoked you can have it reinstated but you have to file all back reports and returns and pay all takes. From what I could gather from a search on the states website is his company was registered as a S-Corp. So if the IRS will not issue him a new EIN the only way he can continuum to do business in NJ is to come up with a lot of money Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted April 12, 2014 Report Share Posted April 12, 2014 Tried the online SS4 application and got refused so I called and I was told that because I already have and EIN connected to my SS# that I could not get another one. Not sure if the same thing would happen if I was applying as an LLC or S-Corp. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 12, 2014 Report Share Posted April 12, 2014 No, a legal entity like an S Corp or LLC can and should have it's own EIN. Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted April 13, 2014 Author Report Share Posted April 13, 2014 No, a legal entity like an S Corp or LLC can and should have it's own EIN. That's what I thought Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 13, 2014 Report Share Posted April 13, 2014 Go online and see if you can get him a new EIN (work with me here) for his Sch C business and let the rest of the EINs die. Quote Link to comment Share on other sites More sharing options...
mrichman333 Posted April 13, 2014 Author Report Share Posted April 13, 2014 Go online and see if you can get him a new EIN (work with me here) for his Sch C business and let the rest of the EINs die. That was my first suggestion, but the GIRLFRIEND didn't understand it. I'm going to suggest it again. I gave her some phone numbers to call and made a couple of other suggestions/ But if he or she want me to do this stuff for them their going to have to pay me. 2 Quote Link to comment Share on other sites More sharing options...
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