How Do I Apply For An Employer Identification Number? (EIN)
Employers and other organizations must obtain an employer identification number (EIN) to identify themselves for tax administration purposes, such as starting a new business, withholding taxes on wages, or creating a trust. Entities apply for an EIN by filing IRS Form SS-4. Page two of the form advises whether an applicant needs an EIN.
Other entities that need an EIN include corporations, partnerships, estates, trusts, state or local governments, and churches and other nonprofit organizations. Unincorporated entities (sole proprietorships) that establish a retirement plan or that file certain tax forms will also need an EIN for filing the relevant forms.
The IRS does not charge for obtaining an EIN and has sought to simplify the application process. Taxpayers may apply by mail, by fax, or online. International applicants may also apply by phone. In all cases, if the IRS determines that the applicant needs an EIN, the IRS will issue the EIN and transmit it to the taxpayer in the same manner as the application was made.
Applications by mail generally take four weeks, the IRS indicates, once the SS-4 is properly and completely filled out. Entities located in the U.S. or a U.S. territory can apply online. For online applications, the IRS validates the information and issues the EIN immediately. The IRS notes that the principal officer or other relevant party must have a valid taxpayer identification number, such as a Social Security Number, to use the online application process. The IRS will respond to a completed fax application within four business days, if the applicant provides a fax number.
Filing without EIN
The IRS states that it will only issue one EIN per day per responsible party, regardless of the means of applying. If the taxpayer needs to file a return but lacks an EIN because of this limitation, the IRS advises that the taxpayer should attach a completed Form SS-4 to the completed and signed tax return. The IRS will assign an EIN and then process the return.
from my CPA, J. Michael Grinnan CPA 9900 Corporate Campus Drive Suite 3000 Louisville, KY 40223 Main Number 1-502-657-6333 Email Mike@JMGCPA.com
POST Election Congress Grapples with Extenders as Lawmakers Plan for 2015
The results of the mid-term elections create a new dynamic in Congress with Republicans poised to take control of both the House and Senate in January. Prospects for tax reform may have brightened for 2015. In the meantime, the lame-duck Congress must deal with some urgent tax bills, most notably the tax extenders.
Expired tax breaks
As the 2015 filing season grows closer, lawmakers are under pressure to renew a package of expired tax incentives, known as tax extenders. There are more than 50 expired extenders that impact individuals and businesses. For individuals, some of the most far-reaching are the above-the-line deduction for higher education expenses, state and local sales tax deduction, mortgage debt forgiveness, deduction for mortgage insurance premiums, credit for energy improvements to personal residences, and the teachers’ classroom expense deduction. For businesses, the expired incentives include the research tax credit, special expensing rules for film and television productions, bonus depreciation, enhanced small business expensing, incentives to encourage production of wind energy and alternative fuels, and many more. All of these incentives expired after December 31, 2013. That means taxpayers cannot claim them on their 2014 returns filed in 2015 unless the incentives are extended.
Many Congressional staffers and Hill observers predict that lawmakers will renew the extenders in December. A vote could come in the House and Senate before December 20. A comprehensive extenders bill, the EXPIRE Act, is pending in the Senate. A similar bill, however, has not moved in the House. Instead, the House voted to extend some but not all of the extenders. Before year-end, the Senate could approve the EXPIRE Act and send the bill to the House. The Congressional Budget Office estimates that extending all of the expired provisions would cost $94 billion over two years (reflecting a retroactive extension to January 1, 2014 and an extension through the end of 2015). Our office will keep you posted of developments as tax filing season approaches.
The IRS has cautioned that the longer Congress waits to renew the extenders the greater the likelihood that the start of the 2015 filing season will be delayed. The IRS’s return processing systems are programmed for the current tax laws. The IRS must update its return processing systems for any changes that lawmakers make to the tax laws, such as renewing the extenders. Late legislation in the past has delayed the start of the filing season by around two weeks.
When the new Congress meets in January, Republicans will have majorities in the House and in the Senate. GOP leaders have started to outline some of their priorities for 2015, including tax-related issues.
Tax reform. Rep. Paul Ryan, R-Wisc., who will serve as chair of the House Ways and Means Committee, has indicated his interest in tax reform, but so far has not provided any details. Ryan’s counterpart in the Senate, Sen. Orrin Hatch, R-Utah, who will serve as chair of the Senate Finance Committee, has also expressed support for tax reform. President Obama repeated his proposal to reduce the corporate tax rate in exchange for the elimination of some unspecified business tax breaks. Whether any tax reform proposals will gain traction in 2015 is unclear.
Affordable Care Act. Shortly after the elections, Hatch said he will propose an alternative to the Affordable Care Act (ACA) as well as bills to repeal parts of the ACA, such as the medical device excise tax. House Speaker John Boehner, R-Ohio, added that the GOP-controlled House will move to repeal the ACA in 2015.
Permanent extenders. Any renewal of the extenders will be temporary, carrying a likely expiration date of December 31, 2015. Lawmakers are expected to take a close look whether to make permanent some of the extenders and allow others to expire after 2015. Good candidates for a permanent extension are the state and local sales tax deduction, the higher education tuition deduction, enhanced small business expensing, and the research tax credit. One drawback, however, is the cost of making these incentives permanent. Many lawmakers will want to offset the cost. Negotiations over the long-term fate of the extenders are likely to be contentious as taxpayers seek to preserve their special tax breaks.
Corporate profits. In 2004, lawmakers agreed to a temporary repatriation tax holiday that allowed businesses to repatriate foreign profits at lower tax levels. Similar legislation is expected to be introduced in the new Congress. Again, negotiations will be intense as some lawmakers would seek to offset the cost of a repatriation tax holiday.
If you have any questions about the lame-duck Congress and the prospect for tax legislation in the new Congress, please contact our office. Keep in mind that as 2014 draws to a close, so does the time in which to make possible tax savings moves. Renewal of some or all of the extenders could impact your year-end tax planning.
If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.
J. Michael Grinnan, CPA.CITP Certified Public Accountant 9900 Corporate Campus Drive, Suite 3000 Louisville, KY 40223 Office 502-657-6333 Fax 502-657-6334 Email Mike@JMGCPA.com
Earlier today, a Realtor was found dead in a shallow grave after an intensive 3 or 4 day search for her upon finding her car with purse and cell phone, sitting in the driveway of a house for sale. The Realtor had told her husband she was going to show a house to a buyer and was never seen again.
Mike Butler shared his law enforcement background tips for not only your personal safety and security, but also for all of your contractors and especially your loved ones.
News article below.
right click and “Save As”
45 min unedited audio from a Gold Member Power Lunch.
Beverly Carter Realtor
LITTLE ROCK, Ark. — A parolee accused of abducting and killing a top-selling Arkansas real estate agent had contacted her to set up an appointment to view a vacant house, authorities said Tuesday, hours after discovering the woman’s body in a shallow grave at a concrete company.
Police found Beverly Carter’s body early Tuesday, five days after she went to show the house in a rural area near Little Rock and never returned. Authorities arrested Arron Michael Lewis, 33, on Monday on suspicion of kidnapping, and preliminary charges of capital murder and robbery were added after Carter’s body was found buried at a business where Lewis previously worked.
Lewis, who was on parole for theft convictions, pleaded not guilty to the preliminary charges and remained in the Pulaski County jail Tuesday without bond. It wasn’t immediately clear whether he had an attorney, though Lewis told reporters Tuesday while he was being taken to be questioned by authorities that he did not kill Carter.
When asked why Carter was targeted, Lewis responded: “Because she was just a woman that worked alone — a rich broker.”
Pulaski County Sheriff’s Capt. Simon Haynes wouldn’t say how the 49-year-old Carter was killed or why, but described her as “a target of opportunity” for Lewis. He said Lewis scheduled the appointment to see the home in Scott, about 15 miles east of Little Rock, but wouldn’t say how Lewis learned that Carter was a real estate agent.
Haynes and Pulaski County Sheriff Doc Holladay also wouldn’t say what linked Lewis to the crime.
Prosecutor Larry Jegley said his office is still reviewing the case and that it’s too soon to say whether he would seek the death penalty against Lewis.
“Events like this stain the soul of our community,” Jegley said. “They leave scars, and we know that. And we also know that many of y’all are wanting answers that simply can’t be given at this time.”
Friends, family members and fellow real estate agents joined the search for Carter throughout the weekend. On Tuesday, many of them attended a news conference, wearing red shirts to honor the mother and grandmother.
“If you had a sweet scale, it was Beverly, and then there was sugar, and then there was other sweeteners. That’s how sweet she was,” said David Goldstein, a real estate broker who worked with Carter for more than 10 years. “Now, she was pretty feisty too. In her professional life, if you were being protected by her as a Realtor, if you were her client, that sweet had some teeth.”
Please enter your comments and ideas to share with investors.
Hello and Check This Out! Great News for Investors and Sellers
I received the article below in an email sent to me from National REIA.
My Short Version Summary of Your Benefits:
1.) Investors who have short saled properties where the lender accepts less than the balance owed, typically had to report the amount of the discount to the IRS as income and pay income tax on the discounted dollar amount. With this new extension, it prevents the IRS from taxing your cancelled debt or the amount of your discount. It appears this expired in 2013; however this new extension act now includes both 2013 and 2014 tax years. SPECIAL NOTE: If you have short saled any properties in 2013 and 2014, you should verify and make sure your tax preparer knows all of the details on this. I will bet many investor’s tax preparers were aware of the original act, but not this extension.
2.) SELLERS: when buying investment property using “short sale” technique, you have a brand new benefit for your seller. Get it short saled and close before the end of 2014, and they will not get taxed on the amount the lender discounts. HUGE Benefit for your Seller. Once again, remember your seller might check with tax advisor and they may not be aware of this new extension to the Mortgage Forgiveness Debt Relief Act Extension.
Below is the email I received this morning.
Mortgage Forgiveness Debt Relief Act Extension:
Over the course of the first two weeks in July, National REIA’s lobbying arm in Washington, D.C., in concert with National REIA board member and my good friend Tom Zeeb, met with the key sponsors of legislation to extend the short sale tax break retroactively for 2014 and through 2015.
The extension of this tax break, which prevents the IRS from taxing cancelled debt during the utilization of short sales, is critical to restoring the use of short sales.
Since the failure to extend the Mortgage Forgiveness Debt Relief Act into 2014, short sales have fallen dramatically since the passage of the tax break implementation in 2008 to 2013 and through the passage of FHFA’s National Standard Short Sale Program, another product of National REIA’s lobbying arm.
What are Your Comments On This New Extension? (please click on the “Leave Comments” button at top right of this article)
True Story, this just came in this morning on our Emergency Hotline
What Would You Do? – please click the “Leave Comments” Button Above
Instantly, They HATE Your Guts!
I was totally shocked this morning and had to share this with you Mike. In case you did not know, my real estate company provides a “Tenant Finder Service” for rental properties owners in my town. Investors with 300+ units and more use our service on all of their properties. It works!
Our Tenant Finder Service markets their rental unit, shows it, takes and processes applications, and can also handle the entire Move In Process including signing all docs and collecting rent and security deposit.
Yesterday, Beth handled a move in process for a Tenant Finder Home. All was done properly for new tenant orientation and training, monies, docs, keys and owner knew in advance and was informed of his new tenant getting started.
Now SCHOCK and AWE Happened This Morning!
HIs New Tenant called our 24 hr Emergency Hotline reporting his home had no electricity nor any air conditioning. Keep in mind, this is a Saturday morning.
After receiving their 36 second emailed voice message, I was flabbergasted. I quickly forwarded the email voice message to the owner along with a few comments about how this behavior absolutely destroys everything we have done in orientation and training to get them off on a good start with owner.
(fyi, in my town, our electric company takes 3 days to transfer service and each new tenant is informed they have 3 business days to transfer utilities… yes, we used to have them do it before signing, but this is simpler.)
The Owner’s Email Reply:
“I Do Not Pay for Tenant Utilities”
LESSON LEARNED: Clearer Communication with owner is critical and just like a lease, we will be adding another paragraph in our Tenant Finder Service Agreement.
The simple concept of depreciation can get complicated very quickly when one is trying to determine the proper depreciation deduction for any particular asset. Here’s only a summary of some of what’s involved.
Identifying the asset
The modified accelerated cost recovery system (MACRS) is generally, but not always, used to depreciate tangible depreciable property placed in service after 1986. The MACRS deduction is computed on Form 4562, Depreciation and Amortization. Click Here for Full Video/Article (Members Only)
Real Estate Investor Deal Analysis Review Training Audio on Single Family Home
Jimmy Moncrief interviews Mike Butler to conduct a real “Deal Analysis Review” on a single family home that Jimmy wants to buy for a rental.
Back in May of this year, week of the Kentucky Derby here in my hometown, I had the great privilege and honor to meet Jimmy Moncrief and his sidekick and best friend Brad. Both are from Tennessee and were attending their first Kentucky Derby, a bucket list sort of thing I imagine.
Jimmy is one of my Gold Member and he had requested and scheduled a private one on one coaching/mentoring session, but in a very creative and unique way of doing it.
Jimmy wanted to record it as a live interview of a “Deal Analysis Review” on one of his pending leads on properties to buy. PLUS, Jimmy wanted permission to put it on his own website as a podcast thing. Here is the link to Jimmy Moncrief’s website http://realestatefinancehq.com/turn-landlording-autopilot/
I need your help please. A Little Feedback on the 2 questions below, thanks in advance.
QUESTION: Would You Like to Have Podcasts available from Mike Butler? (please answer below by entering your answer and comments in reply area)
QUESTION: If you answered Yes, Do You Prefer Audio Only or both Video or Both? (please answer below by entering your answer and comments in reply area)
Below is Jimmy Moncrief’s article and link to the podcast interview.
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