Business & farm

1. Will I be penalized for opening up my bank account with my EIN instead of my SSN? - No, you will not be penalized by anyone for opening your business bank account with an EIN.

2. Does the IRS know who's SSN is connected to the EIN? Yes, the IRS knows your SSN is connected to the EIN. Form SS-4, Application for Employer Identification Number, Line 7b asks for the SSN, EIN or ITIN of the "Responsible Party", You are the "Responsible Party" and should have entered your SSN here.

3. Will the money I earn from my business be invalid somehow because it's connected to my business' EIN and not my personal SSN? No, the IRS will be happy to collect tax on this money no matter how it is reported. 

In the Business Income and Expenses interview of TurboTax (General Info section), the program ask if you have applied for an EIN. This is another place you can "align" payments made to your EIN with your SSN for tax purposes.

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