When A Business Dies ... Ask TaxMama ... August 20, 2004

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Published by Eva Rosenberg, MBA, EA
Volume 6, Issue 272 August 20, 2004


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When A Business Dies

» From: West Columbia, SC

Dear TaxMama:

When a person dies you have to tell the Social Security office.

Who do you tell when a business dies?

A few years ago I requested an EIN to start a bank account for an advertising co-op. Things never got off the ground with this so I still have an Employer Identification Number (EIN) I am not using.

Is it possible to change the name and use it for another business?

I know that when you form an LLC or Corp you have to get a new EIN. But it doesn't say anything about what to do with the old one.

(If it makes a difference there was no income and no taxes were filed)

Bill

Hi Bill,

What an interesting question.

If, when you got the original EIN, you filled in the SS-4 form saying that it was for a co-op, in other words, a partnership or association, then IRS expects that EIN to be used for that kind of business.

If you're starting another partnership, you could just file a revised SS-4 with a cover letter saying it's just for a name change - being sure to include the present number in the top right hand corner of the page, above the margin.

On the other hand, it's so easy to get a new EIN.

If you don't still have the bank account, why not just get a new one?

You should write to IRS telling them that you abandoned the original one - and that it was never used to produce income. IRS will be tickled. Hardly anyone ever lets them know.

Best wishes,

Eva Rosenberg
Your TaxMama

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