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Opening Business Account-Tax ID & Name Change

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Question: 
We have a customer trying to open a business account. He has provided us with a 2017 Tax Return, which gives us the Tax ID under which the business is operating. I typed this Tax ID number into the Texas Comptroller of Public Accounts website and got a hit, showing that the business is in good standing. However, the name that was listed has been changed since the Comptroller website was updated (surprising since the 2017 Tax Return reflects this change). The company is not currently operating and, therefore, the individual opening the account does not have access to documentation of the name change for the Secretary of State office. The question is, do we have what we need to open the account? The tax return and Comptroller website verify that the Tax ID number is valid and in Good Standing, but they disagree on the business name.
Answer: 

The company is not currently operating therefore, the individual opening the account does not have access to documentation of the name change for the Secretary of State office.

There is a huge disconnect here. I would proceed with caution. Anyone can type up a tax return. If the person opening the account does not have access to the name change documentation - are they really associated with the business?

First published on 02/17/2019

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