CPA Filed Tax Return under Wrong EIN - How Bad Is This Mistake?

This is definitely a problem that needs to be corrected, but try not to panic. EIN errors happen more frequently than you'd expect, and there's a clear process to address them. First, you absolutely need to file amended returns (Form 1120-X for corporations or Form 1065-X for partnerships, depending on your business structure) with the correct EIN as soon as possible. The IRS computer systems match tax payments and filings by these identification numbers, so using the wrong EIN essentially means your business hasn't filed returns from the IRS perspective. Second, contact the CPA firm immediately. They made the error, so they should handle preparing and filing the amended returns at no cost to you. This is basic professional responsibility. They should also draft a letter explaining the situation to accompany your amended returns. Third, check if any quarterly estimated tax payments were also filed under the incorrect EIN, as these would need to be addressed as well. Same goes for W-2s or 1099s issued to employees or contractors.

After reading your post, I immediately thought about how difficult it can be to sort through tax document errors, especially with EIN issues. Last year I had a somewhat similar situation with some misfiled forms and almost lost my mind trying to get straight answers from the IRS directly. What finally saved me was using taxr.ai (https://taxr.ai) to analyze all my documents and identify exactly what needed to be corrected. Their system helped me pinpoint which forms had the wrong information and generated a clear explanation of exactly what steps I needed to take to fix everything. It was honestly such a relief to have a straightforward analysis rather than spending hours on hold with the IRS or paying my accountant even more to fix their own mistake.

Just wanted to follow up about my experience with taxr.ai after the recommendation here. I was initially just looking for information, but decided to give it a shot with my EIN problem. It was honestly exactly what I needed - uploaded my tax documents (which I was nervous about at first), and within minutes got a detailed report showing everywhere the wrong EIN appeared. The system flagged issues I hadn't even considered - like how the error affected my quarterly estimated payments and some business expense deductions. The report even included specific instructions for completing the amended return forms. Took this to my accountant and they were actually impressed with how thorough it was. Just filed my amendments last week and feeling much better about the whole situation.

Been there with tax filing problems before - trying to get through to the IRS to sort out mistakes can be absolute hell. After weeks of busy signals and disconnects trying to resolve an EIN issue similar to yours, someone recommended I try Claimyr (https://claimyr.com) to actually get through to a human at the IRS. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was pretty desperate so I gave it a shot, and they actually got me connected to an IRS agent within about 20 minutes instead of the hours or days I had been trying on my own. The agent was able to confirm exactly what documents needed to be filed to correct the EIN issue and even put notes in the system about the pending correction to prevent automatic notices being sent.

Been there with tax filing problems before - trying to get through to the IRS to sort out mistakes can be absolute hell. After weeks of busy signals and disconnects trying to resolve an EIN issue similar to yours, someone recommended I try Claimyr (https://claimyr.com) to actually get through to a human at the IRS. You can see how it works here: https://youtu.be/_kiP6q8DX5c I was pretty desperate so I gave it a shot, and they actually got me connected to an IRS agent within about 20 minutes instead of the hours or days I had been trying on my

Just wanted to come back and say I was completely wrong about Claimyr. After continuing to get nowhere with the IRS regarding my EIN issue, I decided to try it out of desperation. Within 35 minutes I was actually speaking to an IRS representative - after literally weeks of failed attempts on my own. The agent confirmed that incorrect EINs are actually a common problem and walked me through exactly what forms I needed to file. They even gave me a reference number for the call so I could refer to our conversation if there were any questions about the amended returns. I was able to get clear answers about potential penalties (likely to be waived in my situation) and timeline for processing the corrections. Worth every penny just for the stress reduction of finally getting actual answers instead of endless hold music.

I work in accounting (not a CPA) and see this kind of thing occasionally. One thing nobody's mentioned yet - make sure to check if the incorrect EIN affected your state tax filings too! Many states just pull info directly from your federal return, so the same error might exist on your state filings.

you shud definitely find a new CPA... thats a huge mistake to make 2 years in a row!! my cousin had something similar happen and ended up with penalties even tho it wasn't his fault. make sure they pay for the cost of fixing it all!!!

This is definitely a serious situation that needs immediate attention, but it's not the end of the world. As someone who's dealt with EIN issues before, here's what you need to do right away: 1. **Document everything** - Get copies of all returns filed with the wrong EIN and gather proof of your correct EIN from your original IRS correspondence. 2. **Contact your CPA firm immediately** - They need to take full responsibility for this error and should handle all amendments at no cost to you. If they try to charge you for fixing their mistake, that's a red flag. 3. **File amended returns ASAP** - You'll need Form 1120-X (if you're a corporation) or the appropriate amended form for your business structure. The sooner you file, the better it looks to the IRS. 4. **Check quarterly payments** - Make sure any estimated tax payments were made under the correct EIN, or those will need to be addressed too. The good news is that EIN errors are more common than you'd think, and the IRS has procedures to handle them. With proper documentation and prompt correction, penalties are often waived. Don't panic, but don't delay - time is important here. As for finding a new CPA, I'd wait to see how professionally they handle fixing this mess before making that decision.

I went through almost the exact same situation two years ago - my previous CPA had been using an EIN with one digit transposed for THREE tax years before I caught it. I was absolutely panicked when I discovered it, but it turned out to be much more manageable than I initially feared. The key thing that saved me was acting quickly once I found the error. I immediately gathered all my documentation showing the correct EIN (original IRS letter, business bank account info, etc.) and demanded that my CPA firm handle all the amendments at their expense. They initially tried to minimize the issue, but when I showed them the clear paper trail of their mistake, they took full responsibility. Filed amended returns for all three affected years within about 6 weeks of discovering the problem. The IRS was actually quite reasonable about it - no penalties were assessed since I included a detailed explanation of the preparer error and corrected it promptly. The whole process took about 8 months to fully resolve, but that was mainly just waiting for the IRS to process everything. One thing I learned is that this type of error is surprisingly common, especially with newer CPA staff who might be handling data entry. The important thing is that you caught it and are taking action to fix it. Your situation with just two years should be much simpler to resolve than mine was. Also ended up switching to a different CPA firm after that experience - not just because of the error, but because of how they initially handled it when I brought it to their attention.

I'm dealing with a very similar EIN error situation right now - my accountant used the wrong EIN for my LLC's 2023 return and I just discovered it when preparing this year's documents. Reading through everyone's experiences here has been incredibly helpful and honestly a huge relief to know this isn't as catastrophic as I initially thought. One question I haven't seen addressed yet - did anyone have issues with their business bank accounts or payment processors when the EIN discrepancy came to light? I'm worried that when I file the amended return with the correct EIN, it might trigger some kind of mismatch alerts with my bank or credit card processor since they have my correct EIN on file but the IRS had been receiving returns with the wrong one. Also, for those who successfully resolved this - did you end up getting refund checks or owing additional money after the amendments were processed? I'm trying to figure out if I should set aside cash in case there are unexpected tax implications from the correction process.

This is definitely a stressful situation, but you're handling it the right way by taking action quickly. I went through something similar with my small business a few years ago - different type of error, but the same panic when you realize your tax filings aren't what they should be. One thing that really helped me was keeping detailed records of every step I took to fix the problem. Document all your communications with the CPA firm, save copies of every form you file, and keep a timeline of when you discovered the error versus when the original returns were filed. This paper trail becomes incredibly valuable if the IRS has any questions later. Also, don't let your CPA firm make you feel like this is somehow your fault or a "minor clerical error." Transposing digits in an EIN for two consecutive years suggests they're not double-checking their work properly. A good CPA should have multiple verification steps to catch exactly this type of mistake. The silver lining is that you caught this before filing your 2024 return, so you can make sure everything going forward is correct. And honestly, dealing with this now during the slower part of tax season (versus discovering it in March) actually works in your favor for getting timely responses from both your CPA and the IRS.

I'm so sorry you're dealing with this stress! As someone who's been through tax filing nightmares before, I completely understand that sinking feeling when you discover a major error like this. The good news is that you've caught it relatively early and EIN errors, while serious, are definitely fixable. Based on what others have shared here, it sounds like the key is acting fast and making sure your CPA firm takes full responsibility for their mistake. One thing I'd add that I haven't seen mentioned yet - when you're gathering documentation to support your case, also look for any business correspondence or contracts where you've used your correct EIN. Things like vendor agreements, client contracts, or even business insurance policies can help establish a pattern that you've always known and used the right number. This makes it crystal clear that the error was on the preparer's side, not yours. Also, while you're dealing with the federal amendments, don't forget to check if this affected any business licenses or registrations with your state. Sometimes these reference your EIN as well, and you want to make sure everything is consistent across all agencies. You're going to get through this! The fact that you caught it and are taking immediate action puts you in a much better position than if you had ignored it or tried to fix it quietly. The IRS actually tends to be pretty reasonable when taxpayers proactively address errors like this.

I can definitely relate to the panic you're feeling right now - discovering a two-year EIN error would stress anyone out! But based on what everyone else has shared, you're in a much better position than you might think. One thing I'd recommend doing immediately is creating a simple spreadsheet to track all the moving pieces of this correction process. List out both affected tax years, what forms need to be amended, any quarterly payments that might be affected, and deadlines for getting everything filed. Having it all organized in one place will help you feel more in control and ensure nothing falls through the cracks. Also, when you talk to your CPA firm about this, don't just focus on getting the amendments filed - ask them what changes they're implementing to prevent this from happening again. Any reputable firm should be reviewing their quality control processes after an error like this. Their response will tell you a lot about whether they're worth keeping as clients. The fact that you caught this during your own document review (rather than getting a notice from the IRS) actually works in your favor. It shows you're diligent about your business affairs and gives you time to get ahead of any potential issues. You've got this!

I'm really sorry to hear about this situation - discovering a two-year EIN error would definitely send anyone into panic mode! But after reading through all the helpful responses here, it sounds like you have a clear path forward. As someone who works in small business consulting, I've seen this type of preparer error more often than you'd expect. The key things that will help you get through this smoothly: 1. **Act fast but don't panic** - You caught this at a good time of year when both CPAs and the IRS have more bandwidth to handle corrections properly. 2. **Make your CPA firm own this completely** - They should handle all amended filings at zero cost to you and provide a detailed explanation letter for the IRS. If they try to minimize this or charge you for corrections, that's a major red flag about their professionalism. 3. **Document everything** - Keep copies of all your communications with the CPA firm, your original EIN documentation, and any business records showing you've consistently used the correct EIN in your operations. 4. **Don't let this derail your 2024 planning** - Once you file the amendments with proper explanations, you can proceed normally with this year's tax planning using your correct EIN. The silver lining is that EIN corrections are routine for the IRS when handled proactively with proper documentation. You're going to get through this just fine!

I completely understand the stress you're experiencing right now - discovering that your CPA made the same critical error for two consecutive years would shake anyone's confidence! But after reading through all these helpful responses, it's clear you have a solid roadmap for resolving this. What strikes me most is how proactive you've been in catching this error during your own document review rather than waiting for an IRS notice. That actually demonstrates exactly the kind of responsible business management that works in your favor when requesting penalty abatements. A few additional thoughts based on what others have shared: **Timeline expectations**: While the amendment process can take 6-8 months for full IRS processing, you should be able to file your 2024 return normally once you've submitted the corrections with proper explanations. **CPA firm accountability**: Their initial reaction to this discovery will tell you everything you need to know about their professionalism. A reputable firm should immediately take full responsibility, handle all corrections at no cost, and explain what process changes they're implementing to prevent future errors. **Documentation is key**: Beyond your EIN confirmation letter, gather any business contracts, bank documents, or prior communications that show you consistently provided the correct EIN. This creates an ironclad case that the error was purely on the preparer's side. You're handling this exactly right by addressing it head-on rather than hoping it goes away. The IRS actually appreciates taxpayers who proactively correct errors with proper documentation and explanations.

I'm really sorry to hear about this stressful situation! As a fellow small business owner, I can only imagine how panicked you must have felt when you discovered this error. But after reading through all the excellent advice here, it sounds like you have a clear path forward and this is definitely fixable. What really stands out to me is that you caught this through your own diligent document review rather than getting blindsided by an IRS notice. That actually puts you in a much stronger position - it demonstrates good faith effort and responsible business practices, which the IRS takes into account when considering penalty waivers. A few things I'd emphasize based on what others have shared: - **Time is your friend right now** - Discovering this in January gives you plenty of runway to get everything corrected before the next filing season gets crazy - **Don't let your CPA minimize this** - Transposing an EIN for two consecutive years suggests a systematic problem with their quality control, not just a simple typo - **Keep detailed records** of every step you take to fix this, including all communications with your CPA firm The consensus seems to be that EIN errors, while serious, are more common than you'd think and the IRS has established procedures for handling them. With proper documentation and prompt action, you should be able to get through this without major penalties. You're handling this exactly right by taking immediate action instead of hoping it goes away. Stay strong - you've got this!