What the IRS was giving you was 5 days to explain whether
the LLC was a single or multimember organization. You still
have the same 75 days to file your Form 8832 to elect to be
treated as a corporation, but in order to assign the EIN,
they need to know if there is one or more members. I'm
guessing that you stated you would be filing as a
corporation on the application and thats why the note about
the 8832 was included.

As an aside, when you file the electronic application
through the IRS website, you are just generating a paper
copy at the IRS which is still processed as a normal faxed
in or mailed in application. The number is validated, or if
there is a problem, returned to the applicant requesting the
missing information.

Phase 2 of the internet application (which includes
immediate validation of the EIN assigned) is supposed to be
rolled out Sept of 2005 right now. Phase 2 is extremely
scarey. The applicant will be interacting directly with the
tax database. If you thought you saw identity theft
problems before, you aint seen nothing yet!

Slava

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We recently electronically filed SS4 for a new LLC. Twice,
within 2 weeks of filing the SS4, an IRS letter gave us 5
days to state our taxable entity type, including filing any
necessary 8832. Otherwise they will void our EIN.

I find this very upsetting. We need not file an 8832 for 75
days and might not decide to do so until as late as the due
of the first federal income tax return.

Any comments?

QuickBooks Customer Advisory Council
Intuit pays me to help make QuickBooks better.
http://www.blocktax.com/
http://www.quickbooks-add-ons.com/

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