Tax News
Systemic Issue Management System (SIMS) Issue

Issue:

A self-employed taxpayer with a federal Employer Identification Number (EIN) and no employees files a California tax return using their SSN. The taxpayer receives a 4600 Letter requesting a return for income reported using their EIN.

Response:

  • Our Integrated Nonfiler Compliance System (INC) has an extensive matching process in place for matching income records, however, if the INC case does not have the EIN listed as an AKA (also known as), this income record may create a new case.

  • Although the EIN is reported on the Schedule C, there is currently no automated process in place to correlate the EIN on the 1099 in INC when it is reported by a Schedule C filer using their SSN.

  • The Personal Income Tax Information System does not allow for secondary account numbers such as EINs.

  • Contact us to explain the income was reported on the Schedule C by calling 800.852.5711 or fax to the Filing Enforcement Section 916.855.5646.

Back to April 2012 Tax News