It's not really an issue with TT. It is an issue with the W9. I will try and sum it up for you
1. a. - The issue is using ones SSN on the W9 as opposed to using a personal EIN or the LLC EIN. I do a lot of contract work. It is not unusual for me to receive 8-10 1099's every year. That is 8-10 companies I submit a W9 form to. I am not giving out my SSN to that many companies for business work. So I use a personal EIN which passes TIN verification.
1.b. - Yes, no misunderstanding here.
2. No misunderstanding here.
3. This is where is gets confusing and there is misinformation among the IRS itself, and among tax professionals. IRS states that if there is a change to a partnership where one partner leaves and the entity becomes one owner, a new EIN should be issued. But then is states under the LLC instructions, that if a MMLLC becomes SMLLLC that a new EIN is NOT needed as the EIN follows the entity. Now the IRS states that an LLC is a state entity and is not recognized for tax purposes. Yet when you sign up for an EIN, it asked if you are an LLC and the instructions differ from MMLLC and partnerships, which according to the IRS, should be the same.
My issue with the EIN was it was originally applied for as a MMLLC. My partner left leaving only me. 4 different CPAs told me it doesn't matter, everything is tied to my SSN anyways which is true. The IRS instructions seemed to support that. I have no issues filing taxes. However, the business name tied to the EIN (what you put on line 2 on the W9) causes TIN verification to fail. If a company is running a TIN check, they check the company name against the EIN as well as my personal name. EIN should only need to be verified agains the owners name (line 1) however companies use the business name to issue checks too and if it all doesn't match, it gets rejected.
I have tried applying for a new EIN as well and the process was rejected stating the entity already exist. So I am giving up and starting over with no issues moving forward. Putting this crap behind me.
