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Retire and Revoke Account Numbers and Authorization

Retire Account Numbers When an Employer is Deceased

Policy: 

When an employer who was active in the F/EA program passes away, the employer's EIN and State Tax (State Income Tax and State Unemployment Tax) Account Numbers must be retired.

Quarterly, after all taxes for an employer have been filed, the assigned <<Staff Title>> revokes deceased employers' Employer Identification Numbers with the IRS.
 
Quarterly, after all taxes for an employer have been filed, the <<Staff Title>> revokes deceased employers’ State Tax (State Income Tax and State Unemployment Tax) Account Numbers.
 
Notice from tax agencies confirming revocation is tracked in the Customer Service System.
 
Note that these account numbers should only be retired when the employer is deceased.  If a participant passes away, but the participant had designated someone else to act as the employer for the participant's program, do not retire these account numbers.  Doing so will prevent the living employer from ever utilizing their EIN and State Account Numbers.  The IRS issues only one EIN for a sole proprietor per lifetime.
Procedure: 

Retire Employer Identification Number for Deceased Employers

  1. Quarterly, after all quarterly taxes for the employer have been filed and paid, <<Staff Title>> submits a letter to the Internal Revenue Service notifying of EINs that should be retired because the employer has passed away
  2. <<Staff Title>> opens letter template for "Retire Forms SS-4"
  3. Letter template states:

Dear Sir or Madam,

The following employers are deceased as of <<Insert Today's Date.>> Please retire the employers' Employer Identification Numbers.

<<List Employer Name>> <<List EIN for Employer Name>>

<<List as many employer names as needed.>>

Please contact <<Staff Name at number during available hours>> with any questions.

Sincerely,

<<Staff Name>> (can be any staff person)

<<Staff Title>>

4. Copy letter

5. Store copy of letter for each deceased employer in participant's file 

6. Submit letter to IRS office where F/EA's Aggregate Forms 941 are filed

7. For each deceased employer, record date letter was sent to IRS office in Customer Service System

8. The Internal Revenue Service will NOT issue a notice to the F/EA that the EIN has been retired.

 
Retire State Department of Labor Account Number

<<Insert Process to Retire State Department of Labor Account Number for Deceased Employers>>

 

 
Retire State Department of Revenue Account Number

<<Insert Process to Retire State Department of Revenue Account Number for Deceased Employers>>

 

 
Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

  1. Dates that request to retire account number are sent are tracked in the Customer Service System
  2. Dates that revocation notices are received are tracked in the Customer Service System
  3. All revocations are sent via Certified Mail
    • Certified Mail receipts are stored with copies of letters for a minimum of 7 years per File Retention Policy
  4. All revocation letters, confirmation sheets and revoked forms are scanned and stored in each participant’s scan file for a minimum of 7 years per File Retention Policy

Revoke Forms 2678, 8821 and State Power of Attorney Forms

Policy: 

When a participant transfers to another F/EA or stops using the program for any reason, certain tax authorization granted to F/EA must be revoked. Heretofore, these consumers will be referred to as "closed employers."

Quarterly, after all taxes for a closed employer have been filed, <<Staff Title>>, revokes F/EA’s authorization assigned by the IRS per Forms 8821 and 2678 and any State Power of Attorney Forms for all closed consumers. All revocations are performed per current IRS and State instructions and Stay Up to Date with Forms, Rules and Regulations.
 
 
Notice from tax agencies confirming revocation is tracked in the Customer Service System.
Procedure: 


  1. Quarterly, after all taxes for an employer have been filed, <<Staff Title>> (or assigned staff) revokes Forms 8821, 2678 and State Forms Power of Attorney for closed consumers
  2. Open Payroll System
  3. Identify any closed employers <<Insert process to identify closed consumers>>

Revoke Form 2678

  1. F/EA revokes Form 2678 for any closed consumers after all quarterly tax payments and returns have been completed
  2. For each closed participant, F/EA completes Form 2678
  3. In Part 1, F/EA enters the following information for the participant or representative employer
  • Check box for "Revoke an Existing Appointment"

In Part 2, enter the following:

  • Enter Employer Name (this will be either the participant or the participant's appointed employer)
  • Enter Employer's Address associated with employer's EIN
  • On Line 5, check the first box for "ALL Employees"
  • The employer is NOT required to sign in Part 1 to REVOKE the Form 2678

In Part 3, enter the following

  • Enter F/EA's Aggregate EIN
  • Enter F/EA's address associated with Aggregate EIN
  • Check box for "Check here if the employer is a disabled individual or other welfare recipient receiving home-care services through a state or local program."
  • Authorized signatory for F/EA signs and dates Form 2678 in Part 3
  1. <<Staff Title>> stores copy of Revoked Form 2678 in participant file
  2. <<Staff Title>> records in Customer Service System that Form 2678 was revoked and the date on which it was mailed to the IRS
  3. <<Staff Title>> mails revoked Form 2678 to Internal Revenue Service using "Where to File" chart in insructions for Form 2678
  4. Internal Revenue Service will submit notifcation of Form 2678 revocation with 120 days.  The notice sent by the IRS is IRS LTR 4228C.
  5. When IRS LTR 4228C is received, <<Staff Title>> tracks the date received in Customer Service System
  6. Store IRS LTR 4228C in participant file

Revoke Form 8821

1.  F/EA revokes Form 2678 for any closed consumers after all quarterly tax payments and returns have been completed

2. For each closed participant, locate participant's original Form 8821 in participant file

3. Write “Closed” and the participant’s close date on the top of Form 8821

4. Copy all revoked Forms 8821 for consumers

5. Place original forms back in participant file

6. Mail copies of revoked Forms 8821 to IRS address where original Forms 8821 were submitted

7.  <<Staff Title>> records in Customer Service System that Form 2678 was revoked and the date on which it was mailed to the IRS

8. Internal Revenue Service will NOT submit notifcation of Form 8821 revocation

Revoke Form State Power of Attorney Forms

<<Insert Process to Revoke State Power of Attorney Forms>>

Internal Controls: 

The internal controls used by F/EA to monitor this process establish responsibility, segregate duties, document procedures and ensure independent internal verification.

  1. Dates that revocations are sent are tracked in the Customer Service System
  2. Dates that revocation notices are received are tracked in the Customer Service System
  3. All revocations are sent via Certified Mail
    • Certified Mail receipts are stored with copies of letters for a minimum of 7 years per File Retention Policy
  4. All revocation letters and revoked forms are scanned and stored in each participant’s scan file for a minimum of 7 years per File Retention Policy