Bookshelf | Reports | Community | KDP Select

Home » Amazon KDP Support » Publisher Support » Account Issues

Thread: Tax information constantly rejected


Reply to this Thread Reply to this Thread Search Forum Search Forum Back to Thread List Back to Thread List

Permlink Replies: 19 - Pages: 2 [ 1 2 | Next ] - Last Post: Dec 23, 2017 4:16 AM Last Post By: Notjohn Threads: [ Previous | Next ]
Mark Wiesner Jr.

Posts: 2
Registered: 08/18/13
Tax information constantly rejected
Posted: Oct 16, 2013 2:54 PM
Click to report abuse...   Click to reply to this thread Reply
I'm an American citizen and I operate as a single-member limited liability company, which is considered a sole proprietorship for tax purposes, complete with my own EIN.

No matter how many times I update the tax information on my account, no matter how carefully I follow the tax interview help guidelines, and no matter what information I put in, the tax info is always being rejected as being wrong.

There's no phone number to call for help in the help section and I'm incredibly frustrated. Please help.
Marcela Martine...

Posts: 236
Registered: 01/15/13
Re: Tax information constantly rejected
Posted: Oct 17, 2013 1:14 PM   in response to: Mark Wiesner Jr. in response to: Mark Wiesner Jr.
Click to report abuse...   Click to reply to this thread Reply
Hi Mark,

I think that what is happening is that because an LLC is disregarded for income tax purposes, you have to use your SSN.

If you look at the W9, in the space where it asks for your tax number it says:
"However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN)."

And on page 3 it says:

"If you are a single-member LLC that is disregarded as an entity separate from its owner (see Limited Liability Company (LLC) on page 2), enter the owner’s SSN (or EIN, if the owner has one). Do not enter the disregarded entity’s EIN. If the LLC is classified as a corporation or partnership, enter the entity’s EIN"

So, you need to use your SSN instead of the LLC's EIN. From the tax point of view, it sort of defeats the purpose of having an LLC.

Marcela Martinez Millan, PhD, EA
Author of: Beyond Frontiers: A Tax Guide for Non-U.S. Citizens
Grey Mountain H...

Posts: 6
Registered: 08/29/14
Re: Tax information constantly rejected
Posted: Aug 28, 2014 8:36 PM   in response to: Mark Wiesner Jr. in response to: Mark Wiesner Jr.
Click to report abuse...   Click to reply to this thread Reply
Mark

I am in the exact same situation. I was wondering if you ever resolved this issue and whether the procedure suggested by the person who responded to you ever worked?

Thanks
Robert Berry

Posts: 1
Registered: 05/20/13
Re: Tax information constantly rejected
Posted: Aug 30, 2014 2:29 AM   in response to: Grey Mountain H... in response to: Grey Mountain H...
Click to report abuse...   Click to reply to this thread Reply
I had the same problem recently and was able to solve it.

According to Amazon's help

For single-member LLCs where the owner is an individual, select the “Individual or Sole Proprietor” radio button. If you select the “Individual or Sole Proprietor” radio button, you will see the next screen asking you for your personal information.

(see link https://kdp.amazon.com/help?topicId=201274750)

It worked for me. I also discovered that I had other issues. For example, the IRS was looking for the address on the original request for your EIN. If this has changed, then that is a problem.

Overall, this worked for me.

Good luck.
Grey Mountain H...

Posts: 6
Registered: 08/29/14
Re: Tax information constantly rejected
Posted: Aug 30, 2014 7:51 AM   in response to: Robert Berry in response to: Robert Berry
Click to report abuse...   Click to reply to this thread Reply
Thanks for the response.

So, once you picked “Individual or Sole Proprietor,” did you use your EIN from your LLC or your SSN?

My CP 575 G (with the EIN) has my LLC's business address, which is not the same as my home address. My LLC's address has not changed.

Did you end up having to use your SSN and your home address, your EIN and your home address, or your SSN and your LLC's address?

This is seriously frustrating! thanks!
Notjohn

Posts: 23,770
Registered: 02/27/13
Re: Tax information constantly rejected
Posted: Aug 31, 2014 3:19 AM   in response to: Grey Mountain H... in response to: Grey Mountain H...
Click to report abuse...   Click to reply to this thread Reply
You can't and shouldn't use your EIN in lieu of a tax ID. This works for out-of-country publishers because in the best case they never have to file a tax return, but unless you are a corporation submitting form 1120 (or other specialized tax entity) you use your SSN.

The IRS got very annoyed with me a few years back when I acquired an EIN and put it on my Schedule C.

Good luck! -- NJ

The book: Notjohn's Guide to Kindle Publishing: Ten Steps to Selling Your E-book on Amazon (Or Anywhere Else) (Third Edition)

The blog: Notjohn's KDP Guide
Marcela Martine...

Posts: 236
Registered: 01/15/13
Re: Tax information constantly rejected
Posted: Aug 31, 2014 11:17 AM   in response to: Grey Mountain H... in response to: Grey Mountain H...
Click to report abuse...   Click to reply to this thread Reply
Pick "individual", use your SSN. Forget about the EIN.
As an individual the address should not matter.
Grey Mountain H...

Posts: 6
Registered: 08/29/14
Re: Tax information constantly rejected
Posted: Sep 1, 2014 8:02 PM   in response to: Notjohn in response to: Notjohn
Click to report abuse...   Click to reply to this thread Reply
My tax status has been "submitted" since Aug 30. If the IRS rejects it again, I will use my SSN from the start. It is a shame Amazon provides no help whatsoever in resolving these issues. But I certainly appreciate all of the assistance from the community here! Thank you all!
Notjohn

Posts: 23,770
Registered: 02/27/13
Re: Tax information constantly rejected
Posted: Sep 2, 2014 2:17 AM   in response to: Grey Mountain H... in response to: Grey Mountain H...
Click to report abuse...   Click to reply to this thread Reply
Please let us know how this turned out, and what tax ID you provided. If you get away with the EIN, that would be good to know.

Good luck! -- NJ

The book: Notjohn's Guide to Kindle Publishing: Ten Steps to Selling Your E-book on Amazon (Or Anywhere Else) (Third Edition)

The blog: Notjohn's KDP Guide
Grey Mountain H...

Posts: 6
Registered: 08/29/14
Re: Tax information constantly rejected
Posted: Sep 2, 2014 8:27 PM   in response to: Notjohn in response to: Notjohn
Click to report abuse...   Click to reply to this thread Reply
will do! As of COB today, still in "submitted" status
Grey Mountain H...

Posts: 6
Registered: 08/29/14
Re: Tax information constantly rejected
Posted: Sep 3, 2014 6:20 PM   in response to: Grey Mountain H... in response to: Grey Mountain H...
Click to report abuse...   Click to reply to this thread Reply
I used my name, SSN, and home address. I got the green check mark--success! When my account screen came back up, the address had changed to my home. I changed my account address back to by business address and saved it. Still have green checkmark.

I understand my LLC is a passthrough entity for tax purposes. Still, it seems to me it ought to be possible to use an LLC and EIN # to set this up. It is a separate legal entity, after all. Guess I shouldn't expect much from the IRS! Thanks!
Marcela Martine...

Posts: 236
Registered: 01/15/13
Re: Tax information constantly rejected
Posted: Sep 3, 2014 6:41 PM   in response to: Grey Mountain H... in response to: Grey Mountain H...
Click to report abuse...   Click to reply to this thread Reply
Grey Mountain Holdings wrote:
I used my name, SSN, and home address. I got the green check mark--success! When my account screen came back up, the address had changed to my home. I changed my account address back to by business address and saved it. Still have green checkmark.

I understand my LLC is a passthrough entity for tax purposes. Still, it seems to me it ought to be possible to use an LLC and EIN # to set this up. It is a separate legal entity, after all. Guess I shouldn't expect much from the IRS! Thanks!


Passthrough entity = does not exist.
LLCs do not exist for income tax, that is why you have to use the SSN. Bummer. Many people want a EIN so they don't have to give out their SSN but at the end you still have to use the SSN.

I am glad that it finally went through! :)
Grey Mountain H...

Posts: 6
Registered: 08/29/14
Re: Tax information constantly rejected
Posted: Sep 5, 2014 11:11 PM   in response to: Marcela Martine... in response to: Marcela Martine...
Click to report abuse...   Click to reply to this thread Reply
thanks! Back to waiting to hear back from my editor...two "backs" in one sentence...now you know why I need an editor!
Notjohn

Posts: 23,770
Registered: 02/27/13
Re: Tax information constantly rejected
Posted: Sep 6, 2014 2:22 AM   in response to: Grey Mountain H... in response to: Grey Mountain H...
Click to report abuse...   Click to reply to this thread Reply
I used my name, SSN, and home address

What? You actually followed the instructions? Good for you!

Yes, the EIN is for paying other people, not for getting paid. I'm sorry to hear you can't game the system, but relieved, too, because otherwise people who follow the rules are made to look like fools.

I'm surprised, actually, that the IRS (and therefore Amazon) will accept an EIN for non-residents, as is evidently the case since so many people have used the EIN dodge for several years now. But as I understand it, one can't carry on from there and use the EIN for filing an actual tax return (though one can of course always put APPLIED FOR) in the space for the ITIN.

The confusion arises because corporations (filing the tax return 1120) do indeed use the EIN for their only tax identification. If you're not a corporation, and don't have a Social Security Number, then you can apply for an ITIN (Individual Tax Identification Number) which has the same format (3 digits, 2 digits, 4 digits).

It's a mish-mash, because the system evolved over a century. Nobody in 1950 ever dreamed that somebody in Bangladesh would be earning money in the United States without ever setting foot here.

Good luck! -- NJ

The book: Notjohn's Guide to Kindle Publishing: Ten Steps to Selling Your E-book on Amazon (Or Anywhere Else) (Third Edition)

The blog: Notjohn's KDP Guide
Abc

Posts: 5
Registered: 09/09/14
Re: Tax information constantly rejected
Posted: Sep 9, 2014 12:43 PM   in response to: Mark Wiesner Jr. in response to: Mark Wiesner Jr.
Click to report abuse...   Click to reply to this thread Reply
nO
Legend
Helpful Answer
Correct Answer

Point your RSS reader here for a feed of the latest messages in all forums