akbaddog7
New Member

I have a disregarded LLC & I have an EIN only banking purposes. Bank issued a 1098 to the EIN. Does the IRS connect EIN & my SSN? Trying to complete Sch E.

When I applied for the EIN, it's only for banking purposes.  I received my 1098, but it is in the EIN, not my SSN.  There is no place on the schedule E to add the EIN.  My question is " Since it's a disregarded entity, does the IRS consider the 1098 one and the same EIN to SSN when they receive it?

ChristinaS
Expert Alumni

Business & farm

There are no big problems here. If your rental property is a SMLLC and is not taxed as a corporation, its under your SSN all the same. Your SSN and EIN are one.

If you have a disregarded entity, everything goes on your 1040. The LLC's EIN doesn't get entered anywhere at all if we are talking about a rental property on Schedule E.

The IRS wants your SSN on tax documents, so you need to correct going forward. Those who pay you and are paid by you should get updated W9 forms. A SMLLC that is not taxed as a corporation should get tax docs with your SSN. The IRS issued this change a few years back to prevent "matching" confusion with single member LLCs.

Its not the end of the world if you have your EIN on some documents. The important part is that you declare the income and expenses correctly. If you had a 1099-MISC with an EIN, that would be a bigger "matching" issue. The IRS is unlikely to be terribly concerned over a deduction.

akbaddog7
New Member

Business & farm

Thank you.  Since the loan is in my LLC name, the bank will not change the EIN as they required an EIN to open the loan.  I'm assuming the answer remains the same?
ChristinaS
Expert Alumni

Business & farm

Yes, it still is disregarded and goes on your Schedule E.
ChristinaS
Expert Alumni

Business & farm

Did you ask them, though? The W9 rules don't mean the loan is under your SSN. It only means the tax forms should relate to your SSN.