exempt customer incorporates - 2 yrs ago!!

our exempt customer, john jones dba fast food, TIN= #11111
we find out from his cpa,(we were talking to him about another matter)that he formed a single member llc two years ago - Fast Foods LLC, TIN = #22222.
He never changed his DDA, nor his checks, nor his TIN on the bank records.
So we are calling him in. He will say, after talking to his accountant, "yeah, change the name and TIN"
What do we do on our exemption? Revoke it? Wait for one year on filing a new exemption on the LLC? File CTRS for the last 2 years?
What if he says, "nhah, leave the account just the way it is?

We had a similar situation, where a business changed names & TIN & told a CSR who completely forgot about it....for a year! The business never said anything else about it, until I discovered it during their bi-annual renewal (It happened right after their review from the previous year). Just unlucky.

Anyway, I called the IRS to get a recommendation & was told not to worry about it, just file a new DOEP with the new tax id # & revoke the old exemption. I noted in the file the name & badge ID of the IRS rep.

Well first off - I wouldn't let him get away with the above ^^^. he is not a DBA anymore.

Since the ownership has changed, you need to revoke the exemption. I would contact the IRS - but I doubt they'll make you re-file everything.

I would send a letter to FinCEN, not the IRS, asking for clarification on the matter. From the facts presented, it does not appear that there was a change in ownership so there is a chance they might not make you backfile. I would not backfile until you receive an answer. Send the letter by registered mail.

I would disagree. They went from a sole proprietorship to a single member LLC. The ownership is still the same, it's just the entity type that is different. Like pp said, contact FinCEN and get confirmation of what to do.