IRS and Tax Filing Issues
in Business, Accounting & Taxes ·
Look, it’s simple logic. Since your SSN gives you authority over the IRS portal for your LLC, my small business, and whatever else...
on that basis, one SSN can manage up to 15,000 different entities on the IRS website here in the States.
As for my own business, it's straightforward. I handed over a notarized power of attorney to the IRS, so there's zero doubt there...
The only real question is how exactly you gained authorization to manage the specific SSN tied to your LLC 🤷
Is it automatic, like it is for sole proprietorships where the owner and the business share the same SSN?
Or does the IRS just automatically grant access to the LLC owner, or do they give it to the manager without any paperwork at all? 🤷
Or does someone actually have to sign stuff and lug it down to the IRS office? Honestly, I have no clue...
But there has to be some system where Jack Young used her own SSN to get management rights for "Jack Young LLC."
What the Federal Reserve is doing is charging for the same thing multiple times. A certificate is a certificate; there's no point in overcomplicating it.
If you already have one, why bother reinventing the wheel and selling separate certificates for the IRS, for sales tax, for e-Invoices, or for e-this and e-that...
Let's look at a hypothetical.
An LLC gets a certificate for sales tax reporting, so the IRS has that SSN in the system and that's it. They know which firm it is and who has the right to manage that firm's IRS account...
Beyond that, it's just a matter of what the IRS monitors through that account and what's visible within the portal—basically, who is a user and who is the admin...
And if that SSN shows that the person authorized to represent and manage the entity is Jack Young, with SSN 123456789, then that's just a citizen's SSN. Access is granted for free via online portals, internet banking, or a standard username and password for something like USPS, and so on... it's all free, so the Federal Reserve can't charge anything.
So, obviously, it makes sense that it works this way.
The only mystery is how that initial SSN for the LLC got access to the IRS the very first time, and whether that access stays free forever or not.
If the IRS grants it automatically without involving the Federal Reserve, and if it doesn't even need to be renewed every five years, then we can cut them out of the equation entirely...
on that basis, one SSN can manage up to 15,000 different entities on the IRS website here in the States.
As for my own business, it's straightforward. I handed over a notarized power of attorney to the IRS, so there's zero doubt there...
The only real question is how exactly you gained authorization to manage the specific SSN tied to your LLC 🤷
Is it automatic, like it is for sole proprietorships where the owner and the business share the same SSN?
Or does the IRS just automatically grant access to the LLC owner, or do they give it to the manager without any paperwork at all? 🤷
Or does someone actually have to sign stuff and lug it down to the IRS office? Honestly, I have no clue...
But there has to be some system where Jack Young used her own SSN to get management rights for "Jack Young LLC."
What the Federal Reserve is doing is charging for the same thing multiple times. A certificate is a certificate; there's no point in overcomplicating it.
If you already have one, why bother reinventing the wheel and selling separate certificates for the IRS, for sales tax, for e-Invoices, or for e-this and e-that...
Let's look at a hypothetical.
An LLC gets a certificate for sales tax reporting, so the IRS has that SSN in the system and that's it. They know which firm it is and who has the right to manage that firm's IRS account...
Beyond that, it's just a matter of what the IRS monitors through that account and what's visible within the portal—basically, who is a user and who is the admin...
And if that SSN shows that the person authorized to represent and manage the entity is Jack Young, with SSN 123456789, then that's just a citizen's SSN. Access is granted for free via online portals, internet banking, or a standard username and password for something like USPS, and so on... it's all free, so the Federal Reserve can't charge anything.
So, obviously, it makes sense that it works this way.
The only mystery is how that initial SSN for the LLC got access to the IRS the very first time, and whether that access stays free forever or not.
If the IRS grants it automatically without involving the Federal Reserve, and if it doesn't even need to be renewed every five years, then we can cut them out of the equation entirely...