Ability to e-file may depend on the length of your name

May 16, 2013 at 1:39 pm (Business, Business Taxes, General Tax Information)

The Modernized E-file System (MeF) that the IRS, states and all tax software use has a required limit of 35 characters for a name, title or description (some states limit to fewer). The main problem is e-filing an application where your name or the name of your business/nonprofit will be set in stone based on what you put in that box, as with an Employer Identification Number (EIN). The IRS, however, only looks at the first 4 characters of the name when an actual return is e-filed. In many cases if your name is too long, you can paper file your application. However, in the case of an Exempt Org. postcard, you have no choice but to e-file.

Therefore, before registering or incorporating your business or nonprofit, you will want to keep the character limit in mind. It is a good idea to also ask the state where you may need to apply for certain tax status or numbers their character limitation as well. If you want to keep a long name, then create a shortened version of it as a DBA to use on your applications and returns.

When you apply for a number with your legal name, you may want to adjust it to fit the character limit as well so that your name, once altered, is as accurate as possible.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: