An Employer Identification Number (EIN) is a 9-digit number issued by the IRS for the purposes of identifying a particular business’ tax account. The EIN format is XX-XXXXXXX..
EINs are used by employers, sole proprietors, corporations, partnerships, non-profits, trusts, estates of decedents, government agencies, certain individuals, and other business entities. These entities must provide their EIN on every form/communication that is sent to the Internal Revenue Service (IRS) or the Social Security Administration (SSA). Note that you should have only 1 (one) EIN for the same business entity. If you do not have an EIN by the time your tax return is due, enter “Applied For” (and the date that you applied) wherever an EIN is requested. Do not use your Social Security Number (SSN) in lieu of an EIN.
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Taxpayers who owed additional tax when they filed their 2017 federal tax return earlier this year can avoid another unexpected tax bill next year by doing a “paycheck checkup” as soon as possible, according to the Internal Revenue Service.
The Tax Cuts and Jobs Act, the tax reform legislation passed in December, made major changes to the tax law, including increasing the standard deduction, removing personal exemptions, increasing the Child Tax Credit, limiting or discontinuing certain deductions and changing tax rates and brackets. These far-reaching changes could have a big impact on the tax refund or balance due on the tax return people file next year. The IRS encourages every employee to do a “paycheck checkup” soon to ensure they have the correct amount of tax taken out of their pay. Checking and adjusting withholding now can prevent an unexpected tax bill and penalties next year at tax time. The IRS Withholding Calculator and Publication 505, Tax Withholding and Estimated Tax, can help. The IRS encourages taxpayers to be proactive: |
Pat Kolodziej
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