Non-Profit Tax

IRS Update Regarding Responsible Party Information

Michelle L. Bryan, CPA

 

 

 

 

 

 

 

Michelle L. Bryan, CPA
Partner

On July 30, 2021, the Internal Revenue Service issued IR-2021-161, which advises non-profit organizations to update their organization’s “responsible party” on file with the IRS.  This notice is being issued by the IRS as a response to security issues, such as identity theft.  For tax-exempt organizations, a responsible party is defined by the IRS instructions in the application for employer identification number (Form SS-4) as the same individual denoted as the principal officer for 990 reporting. To update a tax-exempt organization’s responsible party, the IRS form 8822-B is required to be completed within 60 days of any changes to the organization’s responsible party. While completing the IRS form 8822-B, the name and social security number of the responsible party is required to be included on the form, unless the form is being completed by a governmental entity, which permits the government entity to use the organization’s EIN number in lieu of a social security number. The IRS Form 8822-B should also be used by a non-profit organization to update any changes to the organization’s address. If an organization is unsure who the IRS has on record as the organization’s responsible party, the IRS Tax Exempt and Government Entities Customer Account Services department can be contacted at (877) 829-5500. For more information on IRS Form 8822-B, please refer to the IRS website.