The IRS Explains the Tax Treatment of State and Local Tax Refunds
The IRS has clarified the tax treatment of state and local tax refunds arising from any year in which the new limit on the state and local tax (SALT) deduction is in effect. Read it here.
The IRS Revises the EIN Application Process
Starting May 13, only individuals with tax identification numbers may request an Employer Identification Number (EIN) from the IRS as the “responsible party” on the application.
An EIN is a nine-digit tax identification number assigned to sole proprietors, corporations, partnerships, estates, trusts, employee retirement plans and other entities for tax filing and reporting purposes.
The change will prohibit entities from using their own EINs to obtain additional EINs. The requirement will apply to both the paper Form SS-4, Application for Employer Identification Number, and online EIN application.