TAP E04-082

Form SS-4 Changes

Statement of Issue:

The IRS requested the advice of the Schedule C Non-Filer Committee to combat the following problem:
When completing the Form SS-4 to apply for an EIN, many small business owners will incorrectly state in their application that they will have employees in their business. An incorrect statement on the SS-4 will cause the IRS problems with the filing requirements expected of that business. The IRS asked that the Committee analyze Question 12 and 13 of the Form SS-4.

Proposal:

The Committee proposed to strike questions 12 and 13 and create new questions to be designated 12a and 12b. The questions would be:

Q12a: “Are you paying wages currently?” – “Yes/No”
Q12b: If “Yes” -“state the date wages or annuities were first paid”; and, “What is the number of employees of each type paid: Agriculture-Household-Other?”

A “Yes” answer would trigger the IRS computers to send out the standard employment “Compliance Packet,” including payment coupons, returns and instructions. “No” answers would trigger the IRS computers to send out employment tax obligation booklets with instructions to contact the IRS when first wages/annuities are scheduled to begin in order to request the Compliance Packet.