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wm030303
wm030303, Enrolled Agent
Category: Tax
Satisfied Customers: 112
Experience:  I am both a CPA and EA with over 30 years of experience in solving tax related issues.
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I cannot afford the services of a lawyer or tax professional

Customer Question

I cannot afford the services of a lawyer or tax professional to answer this question. I just got an EIN number for my business at the same time that I registered my business as a single member LLC (have been in business for three years, just changed my business entity from sole proprietor to LLC, which I know is a disregarded business entity and treated as a sole proprietor for tax purposes.) (I requested that the EIN number be effective Jan 1st, 2012.) My question is this: when I got the EIN number I stated that I would have no employees, that is before I realized that the part time person I hired in 2011 had to be treated as an employee, and not a sub contractor., so I need to pay in Social Security on him for 2011, a modest amount, less than $500 for the whole year. I have the federal 941 quarterly returns filled out for the quarters he worked in 2011,(knowing I will pay a penalty for not filing on time )but now I am apprehensive about using the EIN number I was assigned, because of the effective date that I put down as January 1, 2012 and the statement that I had no employees.
Submitted: 2 years ago.
Category: Tax
Expert:  wm030303 replied 2 years ago.

wm030303 :

Hello and thanks for using JA.

wm030303 :

If it was an honest mistake then just go ahead and file the 941 with your EIN. You may be penalized a little unless you paid your employees wages in the 4th quarter of 2011. You could just pay all withholding taxes and fica with the year end 941.

Customer:

So do I file each quarterly 941 return or with just one end 941? Where do I find year end 941 return? Will I be okay filing with the EIN they gave me even though it was not supposed to be effective until Jan 2012

wm030303 :

If you already have them all prepared just go ahead and file them for each quarter and go ahead and use your ein that has already been assigned by the IRS.

wm030303 :

You could also put ein "applied for" on 2011 941's but why do that if you already have it?

Customer:

Even though the EIN isn't supposed to be in effect til next year? sorry just want to be sure about that. Also, I can change the quarterly returns and do the year end 941 if that is better. Actually we didn't have any wages paid in 4th quarter so that might bode better.? will still have the same employee for next year, part time, he only worked about 19 weeks in 2011.

wm030303 :

When you file your personal tax return it will be on a schedule C as a Sole Prop or Disregarded Entity LLC and the 941 form requires a EIN.

wm030303 :

You could show "applied for" EIN on 941 but it would be easier for IRS to Identify your business since it has already assigned an EIN in 2011.

Customer:

That brings me to my last and final question, the LLC was formed December 19 of this year. when we file 2011 tax return do we file as LLC, with our legal LLC name our EIN number even though it wasn't in place til end of year...all I need to know...HA

wm030303 :

I can assure you the IRS will take your payment

wm030303 :

As I said before your LLC will be filed as Schedule C with your Name and SS# XXXXX indicating your LLC Name and EIN on your tax return should not have any effect on your filing.

wm030303 :

Only if you chose to be LLC partnership or Corp would things matter.

Customer:

Yes, I understand, they pretty much treat single member LLC as sole proprietor

Customer:

One more thing,, what form do I look for on IRS site as final 941 for the year

wm030303 :

In the future if you do business with other businesses that issue you a 1099, give them your business name and EIN when you fill out the W9 form too.

Customer:

good idea

wm030303 :

It's same 941 form, you just check Quarter 4. Oct Nov and DEc

wm030303 :

Remember IRS gets millions of these forms and they don't scrutinize all of them.

wm030303 :

They just process and put your money in the Treasury.

Customer:

I still don't understand how I can report all 4 quarters on just one form., I am about done.HA

Customer:

Do I just check all quarters?

wm030303 :

Just show how much was paid in each quarter seperately or show it as all being paid in Oct Nov Dec

Customer:

So I can file one 941, check that is for all four quarters and pay all at once? I'm done, thank you!

wm030303 :

no check on the 941 which quarter is being filed. go ahead and send the IRS four (4) 941 forms all at once and allocate how much was paid to your employee for each quarter seperately.

Customer:

Can I send one single check for all four quarters

wm030303 :

no, you would need to send a sepearte voucher and check for each quarter.

Customer:

that's what I thought.

Customer:

I will accept, thank you and have a good New Year's Eve !

wm030303, Enrolled Agent
Category: Tax
Satisfied Customers: 112
Experience: I am both a CPA and EA with over 30 years of experience in solving tax related issues.
wm030303 and 2 other Tax Specialists are ready to help you

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