What is a Responsible Party? Who can be a Responsible Party?

21 Jan 2022
43 ITN FAQ ENTITY CORP What is a Responsible Party Who can be a Responsible Party

Understanding what a responsible party is all about is an important thing to be aware of when talking about the Internal Revenue Service. One of the main parts of starting an organization or business is to obtain an Employer Identification Number or Tax ID (EIN) number. To obtain the number, you need to complete the application, which can be done online, through fax, or the mail. A responsible party is an individual that, in the eyes of the Internal Revenue Service, has control over all of the business assets. If there is or was a disposition of assets, the responsible party interacts with the Internal Revenue Service to execute the act.

A responsible party needs to be an individual that can complete the Tax ID (EIN) application. The person must provide their legal name, address, as well as the date of birth. On top of that, he or she must also have either a Social Security Number or Individual Taxpayer Identification Number. Without either of these identifiers, the person cannot be a responsible party.