When e-filing corporate tax returns, ensuring the correct name control is crucial for matching the IRS's records. A name control is a sequence of up to four characters derived from the taxpayer's name, used by the IRS to process tax returns accurately.
Formation of Name Control
The name control is formed from the legal name on Form SS-4 when an EIN is requested. It consists of the first four significant characters of the corporation's name, including letters, numbers, hyphen (-), and ampersand (&). If invalid characters exist, they are ignored.
Additionally, when determining a corporation's name control, include the word "The" when it is followed by only one word.
- Sumac Field Plow Inc. will become SUMA
- 11th Street Inc. will become 11TH
- P & P Company will become P&PC
- Y-Z Drive Co will become Y-ZD
- ZZZ Club will become ZZZC
- John Hackberry PA will become JOHN
- ELM will become ELM
- OAK! Tree will become OAKT
- The Willow Co. will become WILL
- The Hawthorn will become THEH
Sole Proprietors
For sole proprietors, the name control consists of the first four characters of the last name. For example, "Jane Smith" becomes "SMIT".
Trusts and Estates
For estates, the name control is derived from the first four characters of the decedent's last name. For trusts, it depends on the trust's name or the grantor's last name, based on the trust type.
Name Changes
If your company's name changes, inform the IRS by marking the appropriate box on Forms 1120, 1120S, or 1120-F, or by sending a letter with documentation signed by a corporate officer.
Verification
To verify the correct name control, review the IRS Business Name Control matrix or contact the IRS Business & Specialty Help Line at 1-800-829-4933 . You might need to authorize your representative using Form 8821 or Form 2848.
Ensuring your name control matches IRS records is essential to avoid rejections during e-filing. If there's a mismatch, verify the EIN, review the name control rules, and consult the IRS e-Help Desk if needed.
For more detailed information, refer to the IRS official page .