Changing your name with the IRS is an essential step in managing your taxes, especially if you've gone through a legal name change or a legal business name change. If you've gone through a marriage, divorce, or another event that necessitates a name change, you'll want to ensure the IRS is aware of this. Therefore, you may be asking, "How do I change my name with the IRS?" Here is what you need to know about your taxes, updating your name, and how to make the change with the IRS.
At Bennett CPA, Merrill Bennett helps individuals and small to medium-sized businesses with their taxes. As a certified public accountant in Colorado Springs, Bennett has years of experience in the tax industry to help with your needs. By working with Bennett CPA, you can have the peace of mind that your taxes are being handled by a professional who is up to date with the latest tax laws.
Here is what you need to know about changing your name with the IRS.
Scenarios That Would Require a Name Change
There are several scenarios where changing your name with the IRS would be necessary. If you have gone through any of these events, then you'll need to reflect this with the IRS for tax purposes:
Legal Name Change
How Does a Name Change Affect Taxes?
Changing your name with the IRS is an important step in ensuring the accurate filing of taxes. Because the IRS requires taxpayers to use their legal names, updating it on file will prevent any discrepancies from appearing when you file taxes. It's also important to note that if your name appears differently on other documents or accounts, the IRS may question your filing.
If you don't update the IRS with your legal name, you may experience issues with the filing of your taxes. This could include delays in processing your return, or having penalties and interest added to your taxes.
Who Do I Contact About a Name Change?
When you are ready to make the name change with the IRS, you should also notify the Social Security Administration (SSA). You'll need to provide proof of your legal name change in order for it to be updated with the SSA’s records.
Remember that when you file your taxes, the IRS makes sure that your name matches your Social Security number. Therefore, it's important to ensure that both documents are using the same name. You'll also want to file Form SS-5. This form is the application for a new Social Security Card, which will reflect your new name change once approved.
How to Update Your Business Name with the IRS
If you are a business owner and want to change your business name, the process is a little different. You'll first need to file the necessary secretary of state paperwork with the state in which you are registered as a business. Additionally, the actions you'll take with the IRS will depend on the type of business entity you have.
For example, if you have a sole proprietorship, you will need to notify the IRS of the name change from the address where you filed your tax return from. Make sure to sign the notification, too!
If you are a corporation and you have yet to file taxes for the current year, you'll mark the appropriate box of Form 1120. If you have already filed the return, then you'll need to notify the IRS of the name change from the address where the return was filed. In addition, a corporate officer will need to sign this notice.
When it comes to partnerships, they should update their name change on Form 1065 if the current year's return has yet to be filed. If the taxes have been filed, then the IRS should be notified of the name change from the address where the return was filed, including a signature by a partner of the business.
Make Filing Taxes Easy with Bennett CPA
Going through a legal name change, whether it's yourself or your business, can be a hassle. But it's important and necessary for filing taxes. If you were wondering, "How do I change my name with the IRS?" then you now have a better understanding of the steps needed.
At Bennett CPA, Merrill Bennett is a tax expert in Colorado Springs who will make the tax process easy. With ever-changing tax laws and the complexity of filing, you want to work with a tax professional who understands your situation. Bennett CPA is here to help you or your business file taxes accurately and on time. Reach out to Bennett CPA to get started!