How to Change My Business Name With the IRS After Filing Taxes
Learn the process of updating your business name with the IRS post-tax filing, including necessary documents and steps for different business structures.
Changing your business name with the IRS after filing taxes is essential for maintaining accurate tax records and compliance. A mismatch in names can cause delays in processing returns or issues with receiving refunds. Properly notifying the IRS of such changes ensures smooth operations.
Documents Needed for a Name Change
The documentation required for a business name change depends on the entity’s legal structure. Each type of business has specific requirements to ensure the IRS updates its records accurately.
Sole Proprietorship
For sole proprietors, the process is straightforward. A written notification of the name change should be included with the tax return. If the return has already been filed, a letter must be sent to the IRS address where the return was filed. The letter should include the business’s Employer Identification Number (EIN) or Social Security Number (SSN), the old and new business names, and a reason for the change. Including local business registration documents reflecting the name change can support the request. While there is no specific form for sole proprietors, a clear and detailed letter can help ensure a smooth process.
Partnership
Partnerships must notify the IRS by submitting an updated Form 1065, U.S. Return of Partnership Income, if it hasn’t been filed yet. If the return has already been submitted, a notification letter, signed by an authorized partner, should be sent to the IRS. This letter should include the partnership’s EIN, the old and new names, and supporting documentation such as state name change certificates or amended partnership agreements. State-level requirements may also need to be addressed, as they can impact the IRS process.
Corporation
Corporations must report a name change by filing an updated Form 1120, U.S. Corporation Income Tax Return. If the return has already been filed, a signed notification letter on company letterhead must be sent to the IRS. This letter should include the corporation’s EIN, the old and new names, and a copy of the Articles of Amendment or other state-filed documents. A corporate officer authorized to act on behalf of the company must sign the letter. Reviewing the corporation’s charter and bylaws for any internal requirements can help ensure compliance during the process.
Limited Liability Company
Limited Liability Companies (LLCs) must follow procedures based on their federal tax classification. Single-member LLCs taxed as sole proprietors follow the sole proprietorship process, while multi-member LLCs taxed as partnerships follow partnership procedures. LLCs classified as corporations must adhere to corporate requirements. In all cases, the name change should be documented in the LLC’s operating agreement and filed with the state. Notification to the IRS requires an updated tax return or a letter, including the LLC’s EIN, old and new names, and the signature of an authorized representative. Providing state-level documentation, such as a Certificate of Amendment, can help validate the change.
Steps to Notify the IRS
Notifying the IRS of a business name change requires a comprehensive, detailed notification. This document should clearly explain the reason for the name change and include the previous and new business names, along with the EIN. The notification must be signed by an authorized individual, such as the business owner or a corporate officer.
The completed notification should be sent to the correct IRS address, which varies by business type and the filing location of the original tax return. Checking the IRS’s latest guidelines or contacting them directly can ensure the notification is sent to the proper address.
Effects on Business Tax Filings
A business name change can affect tax filings, making it essential to update all tax-related documents to reflect the new name. The IRS relies on accurate business names to process returns and apply tax credits correctly. Discrepancies can lead to delays or audits.
Specific tax credits, such as the Research & Development Tax Credit, require updated documentation to ensure eligibility is maintained under the new name. Businesses should verify that all benefits and incentives remain intact after the change and that supporting records are updated.
State and local tax obligations must also be considered. Each jurisdiction may have unique requirements for updating business names in their systems, and delays in compliance can result in penalties. Ensuring all necessary updates are completed promptly can help businesses avoid fines and maintain compliance.
Confirming the Updated Name
After notifying the IRS, verifying that the name change has been accurately recorded is crucial. Reviewing subsequent IRS correspondence, such as notices or letters, can confirm the update. Businesses with online IRS accounts can log in to check if the new name has been reflected in their records.
If discrepancies are identified, contacting the IRS promptly can resolve issues. The IRS’s Business and Specialty Tax Line is a helpful resource for addressing any problems and ensuring the name change is properly recorded.