Sole Proprietor

U.S. Citizens living in the United States who operate a business, or practice a profession as a sole proprietor, report their income and expenses on Schedule C or Schedule C-EZ of the Form 1040.

Form 8802 for sole proprietors must have all the requirements with the name and SSN of the person who filed the Form 1040, Schedule C. See IRM 21.8.4.4.12.5, Individual Applicants.

A Form 8802 may be received that identifies a sole proprietor applicant as:

An individual, or

A business

A sole proprietor can have an EIN when a legitimate reason exists for having one, such as:

Being an administrator of a Pension Plan

Doing business with a federal agency

Being classified as an independent contractor with employees and liable for employment tax or excise tax

Establishing a pension, profit sharing, or retirement plan

Having household employees

Being a single member LLC and needing an EIN for banking purposes

When an application is received for a sole proprietor, it must identify the individual name and SSN of the individual who filed the Form 1040, Schedule C, as well as the name of the business and its EIN (when applicable) for which certification is requested.

If

Then

1. The Form 8802 does not have the individual's name and social security number

Check IDRS for an x-ref TIN using the business TIN.