Just got an EIN and confused about the "Name Control". On W9s aren't you supposed to use the full legal name? If so when is the EIN name control used when filing electronically? As the actual business name on the tax return?
From the letter,
Your name control associated with this EIN is ----. You will need to provide this information, along with your EIN, if you file your returns electronically.
Also if you have a business and are already getting paid with income reported on 1099s using your SSN, can you mix those with 1099s using your EIN?
Thanks
Your EIN is linked to your SSN.....doesn't matter unless you have a P-ship or Corp.
When filing a tax return that includes a SCH C business for which you have been issued an EIN, you will have both your SSN and EIN on the tax return. The SSN will be at the top of page 1 of the 1040. Then EIN will be on the top right of the SCH C in box D and the SSN will also be on the SCH C in the box above box B.
Thanks, if all 1099s are using a SSN do you even need to enter a EIN on SCH C or should you just wait until you get a 1099 with an EIN?
Also where does "Name Control" go on a tax return?
If you have an EIN, then enter it. As for the 1099's, understand that if you are e-filing then the 1099's are not transmitted to the IRS at all. It's all included on line 1 of the SCH C (with line 6 possibly coming into play). The only time the IRS would receive a copy of the 1099 from you personally, would be if you elected to mail the return to the IRS. When you mail it, you're required to income a copy of all 1099's then.
Provided the SSN on the 1099 is the same SSN that the EIN is tied to, there's no real issue with that. However, I would highly suggest you stop giving out your SSN and that you require those currently using your SSN to issue you 1099's, to use your EIN from here on out, starting with the 2022 tax year. Simply send them an IRS Form W-9 with your EIN information only (leave the box for SSN blank) to all those who will be issuing you 1099's for the 2022 tax year. https://www.irs.gov/pub/irs-pdf/fw9.pdf
Also where does "Name Control" go on a tax return?f
Never heard of that. The business name on the business should match exactly with the name you used to get the EIN, which should also match exactly with how you registered your business with your state, if you were required to do so. But as for "name control", to the best of my knowledge there is no such thing or term when it comes to a federal tax return. Maybe it's a state thing if your state taxes personal income?
And actually you don't need to even enter each 1099NEC you get into your tax return. You can enter the total of all as Cash or General income as long as it is the same or more than the 1099NECs. Only the total income goes to Schedule C line 1. The individual 1099NEC are not sent with your return.
@Carl wrote:
But as for "name control", to the best of my knowledge there is no such thing or term when it comes to a federal tax return.
Yes, there is such a term:
https://www.irs.gov/businesses/small-businesses-self-employed/how-your-name-control-is-assigned