topic Is EIN notice of business status binding? in Get your taxes done using TurboTax

Is EIN notice of business status binding?

ctdkite — Wed, 11 Feb 2026 04:08:59 GMT

Last year my wife started her own professional practice. For state purposes, she accidentally registered as a PLLC, even though there are no partners. When she applied for an EIN, the CP 575 letter stated she business must file as corporation with a Form 1120. At the same time, the letter says that determination is not binding on the IRS.

Does she have to file a Form 1120? Whether as the mistaken partnership status (now corrected) or a single member LLC, which she really is, the IRS treats as a disregarded entity. If she files as either one of those, does she need to include Form 8832?

Re: Is EIN notice of business status binding?

DaveF1006 — Wed, 07 Feb 2024 23:36:11 GMT

To clarify, how did she file her federal return last year? Was it filed as a Schedule C?

Re: Is EIN notice of business status binding?

ctdkite — Thu, 08 Feb 2024 19:22:04 GMT

She did not file last year. 2023 was her first year for the business.

Re: Is EIN notice of business status binding?

RobertB4444 — Thu, 08 Feb 2024 21:55:24 GMT

Then she can just file a schedule C on your personal return. As a disregarded entity that is the simplest path, although she should consult with someone as to whether an S-election is right for her at this point.

@ctdkite