IRS Form 8832: this is all you need to know about it
Looking for what information is reported through IRS Form 8832? We have you covered.
The primary purpose of IRS Form 8832 is to inform the US tax authority of the classification of one’s business entity. There are three options: corporation, partnership, or entity disregarded as separate from its owner.
How does the IRS characterize each of these entities?
The IRS defines a corporation as an entity that “conducts business, realizes net income or loss, pays taxes, and distributes profits to shareholders.” Within that definition, various types of businesses can exist.
To be classified as a partnership, there must be “two or more members and at least one member [cannot] have limited liability.” A business becomes an association when all members have limited liability.
Lastly, a disregarded entity is one “that is treated as an entity not separate from its single owner for income tax purposes.”
What information will need to be reported on the form?
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The form requires one to report the name of the business, the address where the business is registered, the name(s) of the owners, and any possible parent companies. The IRS also asks whether the entity is foreign or domestic.
Where to send the form?
Depending on the state you live in, the address Form 8832 must be mailed to differs.
For those in Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia, West Virginia, Wisconsin, the form should be sent to: Department of the Treasury Internal Revenue Service Kansas City, MO 64999.
For those in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Utah, Washington, Wyoming, the form should be sent to: Department of the Treasury Internal Revenue Service Ogden, UT 84201.
For those in a foreign country or U.S. Possession, the form should be sent to: the Department of the Treasury Internal Revenue Service Ogden, UT 84201-0023.
All owners, in cases where there is more than one, must sign the form for it to be treated as valid by the IRS.