Thursday, February 26, 2009

IRS data base - Up to date?

The IRS database must not be up to date for fiduciary name controls.

I recently obtained an EIN for a decedent's Fiduciary return, then e-filed the return which was rejected due to mismatching the EIN to the "Name control" in the IRS database.

I checked the name control which is described as the first four letters of the last name of the decedent or similar name in a trust. I used the first four letters exactly right, but it was still rejected as a mismatch.

Yesterday I e-filed another Form 1041 for a Trust which has been in existence for several years. Today I got an acceptance and I had followed the exact same procedure, using the first four letters in the last name of the person for whom the trust was established.

After pursuing this further, I found that you should not try to use a newly-established EIN for electronic filing for up to two weeks since it takes up to that long to get it in the data base.

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