What Is the BMF Tax? About the IRS Business Master File
Explore the IRS Business Master File (BMF), the central database that forms the official record for your company's tax account and compliance history.
The term “BMF tax” is a common misnomer. The Business Master File, or BMF, is not a tax but a comprehensive database maintained by the Internal Revenue Service (IRS) that houses tax-related information for business entities. This file serves as the official record for each business taxpayer’s account.
The BMF includes entities such as corporations, partnerships, and tax-exempt organizations. Its purpose is to provide a singular source for the IRS to manage taxpayer accounts, process returns, and conduct enforcement activities. The system streamlines the handling of business taxpayer data, ensuring all transactions are recorded accurately.
Information Contained in the Business Master File
The Business Master File contains a detailed ledger of a business’s tax life. A primary identifier within this file is the Employer Identification Number (EIN), which serves as the unique marker for the business entity, similar to how a Social Security Number identifies an individual. The file also records the official legal name of the business and its registered address for official correspondence.
Beyond basic identification, the BMF specifies the tax forms a business is obligated to file, such as Form 941 or Form 1120. The file documents the tax period for these filings and tracks the ongoing status of the tax account, showing any balance due, payments made, or available credits. This data is used for issuing refunds and classifying returns for potential audit.
Accessing and Updating Your BMF Information
A business owner or authorized representative can view the information the IRS holds on their BMF by requesting a tax transcript. This document provides a summary of the data from the master file. Transcripts are available for various tax forms and periods and can be requested from the IRS through their online services or by mail using Form 4506-T, Request for Transcript of Tax Return.
To update or correct information on the Business Master File, a business must formally notify the IRS. For changes to the business address or the identity of the responsible party, Form 8822-B, Change of Address or Responsible Party — Business, must be filed. This ensures the changes are accurately reflected in the master file.
Filing Form 8822-B requires the business’s name, EIN, old address, and new information. Properly filing this form is necessary for maintaining compliance and ensuring that important tax documents, notices, and refunds are sent to the correct location.