Why a startup couldn’t get paid because its name didn’t match IRS records
July 21, 2023
One of our accounting team members asked for help. Her startup client was having trouble getting paid by their customers.
The customers couldn’t match the startup’s Employer ID Number (EIN) to their company name and address. Our client was asking if she should share the cover page of her income tax return to fix this issue.
I’ve seen this before when a company uses a “Doing Business As” name that’s different than their legal name.
The name and address they give customers must match the CP 575 form exactly. This is the form the IRS sends when assigning an EIN.
If it doesn’t match, the IRS may send a notice CP-2100a. This prevents the customer from making payments.
Instead of sharing part of their tax return, I suggest creating a W9 form. This has the key details like EIN and legal business name without sharing sensitive financial details.