Technical Wednesday
Hi, I’m CPA Maximiliano Mira Salas. In this new edition, we cover a lesser-known but critical formal requirement to maintain your entity’s tax compliance in the U.S.: Form 8822-B, which must be filed with the IRS to report a change in your entity’s tax address or responsible party.
This requirement applies to LLCs, C-Corps, Partnerships, and any entity with an EIN (Employer Identification Number), including those with no income or operational activity. At FINANCERS, we monitor and assist our clients with timely filings to avoid penalties, invalid IRS notices, or administrative holds.
🔍 What Is Form 8822-B and Who Must File It?
Form 8822-B is a mandatory informational return used to notify the IRS of specific changes to an entity. It applies in the following cases:
- Change of the entity’s tax address registered with the IRS.
- Change in the responsible party, defined as the individual with control or authority over the entity’s management.
📌 Example: If a member of an LLC moves abroad or if the person authorized to sign IRS forms changes, you must file Form 8822-B. It also applies if the IRS has an outdated tax address on file.
📄 Key Points
- Applies to foreign-owned entities with an EIN: Even if the entity has no income or operations, it must keep its information current with the IRS.
- Deadline for notification: The change must be reported within 60 days of the event. Failure to file may lead the IRS to send notices to the wrong address, impose penalties, or in extreme cases, deactivate the EIN.
- Failing to file 8822-B does not cancel your EIN: But it does prevent proper tax compliance, can cause issues with receiving notices, and may impact your ability to respond to audits or official communications.
- This form does not change your business or legal address: It only updates your tax information with the IRS. It’s independent from what’s registered in the state of formation (e.g., Florida or Delaware) or with your registered agent.
📅 Timing & Practical Considerations
- Submission: Must be mailed to the IRS (no online filing available).
- Processing time: 4 to 8 weeks.
- Include a copy of your EIN notice if available.
- The new responsible party does not need to sign, but the form must be signed by an authorized representative.
📌 Legal & Accounting Disclaimer
This communication is for informational purposes only and does not constitute legal or tax advice. Each case must be evaluated individually, considering the taxpayer’s country of residence, global assets, and applicable international treaties. Filing Form 8822-B should be done under the guidance of a U.S. tax professional with experience in federal compliance.
Not sure which form applies to your situation?
Don’t worry—at FINANCERS we assess your specific case to ensure full compliance, avoiding errors, inconsistencies, and potential penalties.
CPA Maximiliano Mira Salas
International Tax Advisor | FINANCERS
