What Is the Identifying Number of Owner on Form 8832?

Form 8832, Entity Classification Election, allows eligible entities to choose how they will be classified for federal tax purposes. Accurately completing all required fields on this form, including the owner’s identifying number, ensures the Internal Revenue Service (IRS) processes the election correctly.

The Role of Form 8832

Form 8832 is used by business entities to elect their federal tax classification. This election determines whether an entity will be taxed as a corporation, a partnership, or a disregarded entity. The owner’s identifying number is required on this form to link the classification election to the taxpayer responsible for the entity. Without this information, the IRS would be unable to process the entity’s tax filings under its chosen classification.

Proper identification ensures the entity’s income, deductions, and credits are reported correctly on the owner’s corresponding tax returns. The identifying number provides a clear reference point for all subsequent tax interactions.

Identifying Numbers for Different Owner Types

The specific identifying number required on Form 8832 depends on the type of owner making the election. This number is entered on Line 1a of the form. For an individual owner, a Social Security Number (SSN) is used. An individual who is a U.S. citizen or permanent resident, for example, would provide their SSN when electing classification for a single-member limited liability company (LLC) they own.

An Employer Identification Number (EIN) is used by entities such as corporations or partnerships. If a corporation is the sole owner of another entity electing its classification, the corporation’s EIN would be provided on Line 1a. Similarly, a partnership acting as the owner would use its own EIN for this purpose.

Individuals who are not eligible for an SSN but are required to have a U.S. taxpayer identification number will use an Individual Taxpayer Identification Number (ITIN). A foreign individual who owns a U.S. entity and needs to make an election using Form 8832 would provide their ITIN on Line 1a.

Special Cases for Owner Identification

For a disregarded entity, such as a single-member LLC electing to be taxed as a disregarded entity, the identifying number provided on Form 8832 is that of its owner, not the disregarded entity itself. This means an individual owner would use their SSN or ITIN, while a corporate owner would use its EIN, even if the disregarded entity has its own EIN for employment tax purposes.

Foreign owners follow similar guidelines, using the appropriate identifying number based on their entity type. A foreign individual owner without an SSN would use an ITIN, while a foreign corporation or partnership would use an EIN. The IRS needs a valid U.S. taxpayer identification number for all parties making such elections.

When an entity has multiple owners, Form 8832 requires the identifying number of the principal owner or the responsible party. This refers to the individual or entity that controls, manages, or directs the entity and its funds, as defined by IRS guidelines for obtaining an EIN.