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Old 12-14-2015
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Default New IRS Rules for Single Member LLC / Amazon tax wizard

Hi all,

This year the IRS changed the W-9 form - at least it appears they did.

I have a single member LLC. It used to be you could shield your name from Amazon by hiding behind the name of your company if it was an LLC - even if it was single member.

When one is required to fill in this line at the top "Name (as shown on your income tax return). Name is required on this line; do not leave this line blank." I used to enter my LLC name.

This year the IRS has expanded the type of business "Check appropriate box for federal tax classification; check only one of the following seven boxes:"

Now, if you are a single member LLC you have to select "Individual/sole proprietor or single-member LLC" and provide your personal name on the top line and your personal social SS#. At least, that's what you're supposed to do. It's subject to a $50 fine.

In other words, the IRS is now treating a single member LLC as an individual - and it kind of makes sense, because a single member LLC is a "pass through" and Single Member LLC's fill out schedule B and only file a personal return, not a separate business return.

In the past I checked off LLC and checked off S corp.

Each year Amazon makes us go through the tax wizard, right? Each year - from what I remember - we have to fill out information that is comparable to confirming the W9.

I'm wondering if anyone in my boat - single member LLC - is concerned about this.

Thanks in advance for your thoughts.
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Old 12-15-2015
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

I just put multi-member LLC and then went thru the Amazon EIN process. Worked fine. Then, call the IRS after a few days and say you made a mistake and clicked the wrong box.
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Old 12-15-2015
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

Soooo I am confused about what your actual concern is.

Is it loosing an Amazon account?

Or the IRS?
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Old 12-15-2015
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

It has always been this way. A single-member LLC is considered a "disregarded entity" for tax purposes. You need a multi-member LLC - that way they will be verifying the business name against the EIN, rather than your real name.

This is not new.
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Old 12-17-2015
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

I guess I'm concerned about ultimately getting in trouble with Amazon, because I didn't fill in accurate data during the tax wizard interview.

I have been doing the same thing - claiming multi-member LLC - for 4 ears already on the Amazon tax interview.

So far Amazon is not running a match to verify or the IRS is not verifying and responding to Amazon with a flag.
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Old 12-17-2015
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

Quote:
Originally Posted by Foxhound View Post
I guess I'm concerned about ultimately getting in trouble with Amazon, because I didn't fill in accurate data during the tax wizard interview.

I have been doing the same thing - claiming multi-member LLC - for 4 ears already on the Amazon tax interview.

So far Amazon is not running a match to verify or the IRS is not verifying and responding to Amazon with a flag.
Amazon con firms within 24 hours, often less than a hour. For us who just make up a number and add a new number every 30 days realize it fails almost instantly if it does not match.
You are fine. Nothing has changed.
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Old 12-18-2015
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

What if you create a single LLC then create another and have that be "owned" by the original single LLC?

Does that bypass their system?

Technically if its owned by a LLC and not a person that should pass I would assume. I don't sell on Amazon so take what I say with a grain of salt.
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Old 12-18-2015
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

Quote:
Originally Posted by jeffweico View Post
It has always been this way. A single-member LLC is considered a "disregarded entity" for tax purposes. You need a multi-member LLC - that way they will be verifying the business name against the EIN, rather than your real name.

This is not new.
Makes sense, even for PayPal I added an EIN in 2010 since then every single Tax form I get has had my personal name not the name of the company.
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Old 12-24-2015
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

Guys, I created a single member LLC. Then when you fill out the EIN at the IRS system check multi-member, LLC. then go do amazon's tax interview right away, they verify against the EIN, then after that call the IRS and tell them you have a single member LLC and made a mistake.
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Old 01-01-2016
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

Foxhound did you ever figure this out?
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Old 01-02-2016
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

Jeffweico and Yankee! You're my light in the darkness! Thank you so much for all these things you share!!!
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Old 01-02-2016
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

Hi all,

Let me clarify.

In the past on my Amz tax interview I checked LLC - Sub Chapter S. I did this even though I was a single member LLC.

In the past two years I didn't have a problem with Amazon.

My accountant felt I wouldn't have any problems in this year.

Regardless, I'm changing my classification to LLC - Sub Chapter S for 2016.

Superfly101:

"Then when you fill out the EIN at the IRS system check multi-member, LLC. then go do amazon's tax interview right away, they verify against the EIN, then after that call the IRS and tell them you have a single member LLC and made a mistake. "

Where on the IRS system are you referring to?
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Old 01-02-2016
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

It asks if your business is a single member or multi member, I checked multi-member
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Old 04-05-2016
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Default Re: New IRS Rules for Single Member LLC / Amazon tax wizard

Quote:
Originally Posted by Superfly101 View Post
It asks if your business is a single member or multi member, I checked multi-member
If you formed the EIN as a single member LLC is it possible to change it to multimember for amazon interview purposes or must you form a new LLC and start the whole process all over again :(
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