Form 8822-B is used to keep the IRS informed about changes to a business’s address or responsible party. If this information is not kept up to date, important IRS correspondence may not reach the correct person or location.
Missed IRS Notices and Correspondence
If Form 8822-B is not filed after a required change, the IRS may continue sending notices to an old address or to a former responsible party.
This can result in missed notices of deficiency, payment requests, or other time-sensitive communications.
Penalties and Interest Can Still Accrue
Even if IRS notices are not received due to an outdated address or responsible party record, penalties and interest may continue to accrue on any outstanding tax obligations.
Failing to receive a notice does not eliminate the underlying tax liability.
Impact on Business Operations
Outdated IRS records can create administrative problems for a business, including delays in responding to IRS requests or resolving account issues.
In some cases, correspondence may be sent to individuals who no longer have authority to act on behalf of the entity.
No Automatic Penalty for Not Filing Form 8822-B
There is generally no direct penalty solely for failing to file Form 8822-B. However, the consequences of not updating your information can still be significant due to missed communications and unresolved tax matters.
When Filing Form 8822-B Is Mandatory
If an entity has an Employer Identification Number (EIN) and its responsible party changes, filing Form 8822-B is required to keep IRS records current.
Address changes and responsible party updates should be reported as soon as possible to reduce the risk of missed IRS correspondence.
How to Avoid Problems
Filing Form 8822-B promptly after a required change helps ensure that the IRS has accurate contact information on file.
This simple step can prevent delays, misunderstandings, and unnecessary complications in dealing with the IRS.