Form 8822-B must be filed when the responsible party for a business or organization changes. The IRS requires this information to keep records associated with an Employer Identification Number (EIN) accurate and up to date.
What Is a Responsible Party?
The responsible party is the individual who controls, manages, or directs the entity and its funds. This person has the authority to make financial and operational decisions on behalf of the business or organization.
Each entity with an EIN must have a responsible party on record with the IRS.
When a Responsible Party Change Must Be Reported
A change in responsible party must be reported when:
- The previous responsible party resigns or is replaced
- Ownership or control of the entity changes
- A new individual gains authority over the entity’s finances or management
In these situations, Form 8822-B is used to notify the IRS of the updated information.
Timeframe for Reporting a Responsible Party Change
Responsible party changes are generally required to be reported within a limited time after the change occurs. Filing Form 8822-B promptly helps ensure that IRS records remain accurate and that correspondence is sent to the correct individual.
Who Must File Form 8822-B for a Responsible Party Change
Any entity that has an EIN must file Form 8822-B if its responsible party changes, including:
- Limited liability companies (LLCs)
- Corporations
- Partnerships
- Nonprofit and tax-exempt organizations
This requirement applies even if the business is not currently active.
What Happens If a Responsible Party Change Is Not Reported
If the IRS does not have current responsible party information on file, important notices may be sent to the wrong person or not received at all.
Missing IRS correspondence does not stop penalties or interest from accruing if the entity has outstanding tax obligations.
Responsible Party Changes vs Address Changes
Form 8822-B is used for both address changes and responsible party changes. A responsible party update does not automatically update business address information, and an address change does not update the responsible party.
Each type of change must be reported accurately on the form.