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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28885
Experience:  Taxes, Immigration, Labor Relations
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Corporation with employees in 2 different states has been filing payroll returns and depos

Customer Question

Corporation with employees in 2 different states has been filing payroll returns and deposits using 2 different ein's for several years. Have no idea how this got started.
How do we get this straighten out?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
Can you verify where these two EINs came?Which one is correct? Are there two different corporations registered in different states?We need to have better understanding before moving forward.
Customer: replied 1 year ago.
There is only one corporation. Incorporated in Florida in 1975 and uses the correct EIN. When the corporation
began doing business in Georgia, a Georgia CPA, who is no longer available, registered the corporation with the
state of Georgia and apparently applied for another EIN using the correct corporate name, just added DBA after the
name. Corporation has filed separate payroll tax reports for its Florida employees and Georgia employees.
Expert:  Lev replied 1 year ago.
So - that is ONE corporation - and it have TWO correct EINs assigned to that corporation - correct?Both EINs are valid and issued by the IRS - is that correct understanding?
Customer: replied 1 year ago.
That is correct
Expert:  Lev replied 1 year ago.
If, during the research process, you discover that an entity has been assigned two EINs, See IRM 21.7.13.6.3 for instructions on resolving this condition. In any case - you woudl need to contact the IRS asking for consolidation.http://www.irs.gov/irm/part21/irm_21-007-013r-cont03.html21.7.13.6.3 (03-21-2013)Consolidating Duplicate EINs (CC BRCHG)Consolidations of two or more EINs must be done by the Entity function per IRM 3.13.2.13 Multiple EIN. Account consolidation requires an extensive knowledge of incompatible filing requirements, freeze codes, and many other factors that can cause a no-merge situation. The BMF Entity function, therefore, has the sole authority for merging BMF accounts.Exception:See IRM 21.3.8.9.6 for Exempt Organization consolidations.On the phone if, during the research process, you discover that an entity has been assigned two (or more) EINs:Ask the taxpayer which EIN they would like to retain. If the taxpayer has no preference, look to see if one of the EINs has Form 941 filing requirements. If so, advise the taxpayer to use that EIN. If neither of the EINs has a Form 941 filing requirement or if both EINs have Form 941 filing requirements, advise the taxpayer to use the earliest assigned EIN.Prepare and forward Form 4442/e-4442, Inquiry Referral, to the BMF Entity function. See IRM 21.7.13.7.2.4 for BMF Entity state mapping.Advise the Entity function which EIN should be retained based on taxpayer response or research in Step 1 above.If the problem is identified as a result of correspondence received (returned CP 575, taxpayer letter etc.), follow local procedures to route the correspondence to the BMF Entity function.In either case, forward these referrals to BMF Entity on a daily basis.
Expert:  Lev replied 1 year ago.
There are additional procedures - but these are for IRS employees to follow.Still you might want to be aware what will be done.After that consolidation is completed with the IRS - you will need to contact state taxing authorities to do the same.3.13.2.13 (01-01-2014) Multiple EIN 3.13.2.13.1 (01-01-2014) Consolidating Accounts http://www.irs.gov/irm/part3/irm_03-013-002r-cont03.htmlLet me know if that answered your question.