How to Update My Tax ID in QuickBooks
- 1). Open up the company information screen. You do this by clicking on the "Company" tab on the top menu bar and clicking on the "Company Information" tab. The small information box that opens will include the basic information of the company in the QuickBooks file. The Company Identification is located on the right center of the screen. If there has never been a federal employer identification number entered, it will be a simple matter of putting that number here in the "EIN" text box. If this is a sole proprietorship, the owner will have the option of using his Social Security number and placing that number in the "SSN" box. Using a Social Security number for identification on numerous tax forms that employees, vendors and others can get ahold of is highly discouraged because of the potential of identity theft.
- 2). Make a backup copy of the QuickBooks file. If there has been an EIN number entered and transactions have been made, including the payment of payroll or estimated tax payments using the incorrect number, you cannot just change the number in QuickBooks and keep using the same file as that will cause inconsistencies in accounting for these taxes with two different identification numbers. Make a backup of the QuickBooks file and keep the backup in a safe place with the incorrect number. You can do this by clicking on the "File" button and clicking on the "Back Up" option. Change the name of the file to reflect the reason for this backup copy.
Enter the new or updated Tax ID number in the Identification box and click on "Ok". Any future tax forms will reflect the updated ID number and you will have the backup available should there ever be an audit by the IRS. If any payments have been made under the old number through the Intuit Payroll service, you will have to contact customer service to reassign your subscription or payroll service key to the new EIN number. - 3). File the amended return. The amounts paid under the first identification number and future amounts paid under the updated number are now permanently separated in the form of two different QuickBooks files. You will have to file an amended return for each tax form that was filed under the incorrect number. This includes for sole proprietorships any 1040ES payments, or 941 payments for payroll taxes and both Federal and State unemployment taxes. For corporations this would include all of the payroll taxes and the estimated corporate payments.
- 4). Change Income Tax Form Used box if necessary. If the reason for the update in the Tax ID number is that the company has changed from one tax form to another, in other words, from a Sole Proprietorship to a Corporation, a C-corp to an S-corp or any other change, you must change the "Income Tax Form Used" box. It is located in the lower left of the company information screen. When this change is made, a warning will pop up that will let you know that all income tax line assignments will be deleted. Click "okay" and change these tax lines later.
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