How to Change a Business Name With the IRS: Sample Letter

Maintaining accurate business information with the Internal Revenue Service (IRS) is fundamental for tax compliance. When a business changes its name, promptly notifying the IRS is necessary to ensure consistent and correct tax filings and correspondence. Failing to update this information can lead to complications, including delays in processing tax returns, misdirected official notices, and issues with federal tax compliance. The IRS relies on precise records to administer tax laws and communicate with businesses.

Gathering Essential Information for Your Name Change

Before notifying the IRS of a business name change, gather all necessary information and documentation. This ensures accuracy and streamlines the process. You will need your Employer Identification Number (EIN), a unique nine-digit number assigned by the IRS for tax purposes. Sole proprietorships, unincorporated businesses owned by one individual, might use their SSN if they do not have an EIN.

The exact old business name, as it appears on official IRS records and prior tax filings, is required. The precise new business name, which should already be legally registered with the appropriate state authority, must also be clearly identified. Additionally, the business’s current mailing address and the effective date when the name change officially took place are necessary details. Understanding the business entity type—such as a sole proprietorship, partnership, corporation, or Limited Liability Company (LLC)—is also important because it can influence specific IRS requirements.

Corporations and LLCs that have formally changed their name with a state authority, by filing an amendment, need to provide proof of this state-level change to the IRS. This often involves attaching a copy of the stamped or approved Certificate of Amendment from the state. Sole proprietors might have fewer formal state requirements for a name change, but they still need to update the IRS to ensure their tax records reflect the correct business identity.

Form 8822-B, Change of Address or Responsible Party – Business, is primarily for updating a business mailing address or responsible party, but it can accompany a name change notification. If a business address also changed along with the name, Form 8822-B would be relevant. This form requires details such as the business name, EIN, old and new addresses, and information about any changes to the responsible party. Ensuring all related information, like the address, is current on this form supports overall record accuracy with the IRS. All gathered information will form the basis of the notification sent to the IRS, whether through a formal letter or by checking a box on a tax return.

Notifying the IRS of Your Business Name Change

After gathering all necessary information and completing any required state filings, notify the IRS of the business name change. The primary method for this notification is through a written letter mailed to the IRS. This letter should be clear, concise, and contain all pertinent details for the IRS to update its records.

The notification letter should begin with the current date, followed by the business’s current mailing address. The IRS address to which the letter is sent will depend on where the business files its tax returns. The subject line should clearly state its purpose, such as “Notification of Business Name Change.”

The body of the letter must explicitly state the old business name and the new business name. It should also include the business’s Employer Identification Number (EIN) or, for sole proprietorships, the Social Security Number (SSN). The effective date of the name change, which is the date the change became legally effective with the state, must be clearly stated. For corporations and multi-member LLCs, it is advisable to include a statement confirming that the name change has been formally registered with the appropriate state authority.

Here is a sample letter structure for notifying the IRS of a business name change:

[Your Business Letterhead, if applicable]

[Current Date]

Internal Revenue Service
[Appropriate IRS Mailing Address based on where you file your return]

Subject: Notification of Business Name Change

Dear Internal Revenue Service Representative,

This letter serves to formally notify the Internal Revenue Service of a change in our business name. Our business, previously known as [Old Business Name], has officially changed its legal name to [New Business Name]. This name change became effective on [Effective Date of Name Change].

Our Employer Identification Number (EIN) for this business remains [Your EIN]. We have already completed the necessary legal filings with the state of [Your State] to formally register this name change. We have enclosed a copy of the [Certificate of Amendment or similar state filing document] as proof of this change.

Please update your records to reflect our new business name, [New Business Name], for all future tax correspondence and filings associated with our EIN. We appreciate your attention to this matter.

Sincerely,

[Your Signature]
[Your Printed Name]
[Your Title, e.g., Owner, President, Managing Member, General Partner]
[Your Phone Number]

For some business entity types, such as corporations and partnerships, the name change can also be reported by checking a specific box on their current year’s tax return. Corporations would check a box on Form 1120 or Form 1120-S, while partnerships would do so on Form 1065. However, single-member LLCs taxed as sole proprietorships cannot use this method and must send a written letter. Regardless of the method, it is important to keep a copy of the sent letter and any supporting documentation for your records.

After Notifying the IRS

Once the notification of a business name change has been sent to the IRS, understand the subsequent expectations and necessary actions. The IRS does not send direct confirmation that a business name change has been processed. Processing times for name change updates can vary, taking four to six weeks.

Following the notification, consistently use the new business name on all future tax filings, payments, and correspondence with the IRS. This consistency helps ensure that all tax-related documents are accurately matched to the business’s updated record. Any new tax forms or payments should bear the new legal business name to prevent processing delays or issues.

If a confirmation is not received within the expected timeframe, or if any issues arise, businesses can contact the IRS directly to inquire about the status of their name change. It is advisable to have the Employer Identification Number (EIN) and other relevant business details readily available when contacting the IRS. Attempting to send a duplicate notification letter without first checking the status could cause further confusion and delays.

Beyond the IRS, it is also important to update the business name with other relevant entities. This includes state and local tax authorities, banks, financial institutions, and licensing boards. Updating these external parties ensures that all business records are consistent across various platforms and helps prevent any operational or compliance issues. For example, business bank accounts opened under the previous name will need to be updated to reflect the new legal name.