convince Braintree that we're okay with the IRS

[chadwhitacre]

From: Braintree
Subject: Braintree Tax Information Required

Hope you are well! We wanted to reach out to you because we have been notified of an inconsistency with the current Tax ID number and/or legal name we have on file. Our banking partner has informed us that tax information you supplied when you applied for Braintree doesn’t match what the IRS has on file for your company. If this information is not received by 6/19/2015, your account will be closed. Please send us this information as soon as possible:

• Tax ID and legal name
• An official document reflecting the legal name and existing tax ID number. We need this to come from the IRS – it cannot be a local or state document

Please note that while this will allow us to update your tax ID information with our systems and banking partner, this will not update your information with the IRS. We recommend updating your information directly with the IRS by contacting them at: 1-(800) 829-4933.

We sincerely appreciate you working with us to get this updated as soon as possible to prevent any processing interruptions. As always, please let us know if you have any questions.

[chadwhitacre]

To: Braintree

Yikes! Thanks for the heads-up, []. Our company name is Gratipay, LLC, and our EIN is []. Is that what you have on file?

Now, we have changed our name a few times since we were founded in 2002, and I expect that's what is causing the problem. We used to be Gittip, LLC, and before that we were Zeta Design & Development, LLC, and before that we were Zeta Web Design Company. I will follow up with the IRS to figure out what we need to do to update our records with them and get the official document you're asking for.

[chadwhitacre]

Although changing the name of your business does not require you to obtain a new EIN, you may wish to visit the Business Name Change page to find out what actions are required if you change the name of your business.

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Do-You-Need-a-New-EIN

[chadwhitacre]

You will be required to obtain a new EIN if any of the following statements are true.

• You change to a partnership or a sole proprietorship.

...

• Your partnership is taken over by one of the partners and is operated as a sole proprietorship.

That applies to us. I had two business partners approximately a decade ago.

[chadwhitacre]

/me on hold with the IRS ...

[chadwhitacre]

Okay! I talked to Ms. Smith (:sunglasses:).

Q1: How do I provide documentation about the name of my business and my EIN?

A1: Write to Department of the Treasury, Cincinnati, OH 45999, attn: Entity, and ask for a 147c letter:

In the year 2013, Form 147c has gained prominence thanks to new IRS regulations requiring business owners to match up EIN (Employer Identification Number) and TIN (Taxpayer Identification Number information with the name of your business entity.

Ms. Smith reports that this takes four weeks to process, plus two weeks to mail. If we fax in the SS-4 with a return fax number, we can get a reply in four or five days.

Q2: I changed from a partnership to a sole proprietorship over ten years ago. Should I get a new EIN?

A2: She asked for our EIN so she could see how we're currently in the system. I explained that we've been filing as a sole proprietorship (Schedule C) and haven't gotten any notices asking for a partnership return (Form 1065). During identity verification I was not able to provide the address that the IRS has on file(!). I went through six addresses and none of them were correct. "Well, that's probably why you haven't gotten any notices asking for a Form 1065." Could be. I'd have to do some digging to piece together the structural changes to Gratipay in its early days along with our filing history. Regardless, "if you don't have the correct address you won't able to ask for a 147c."

Q3: How do you suggest I proceed?

A3: [silence] "Could I put you on hold for a minute?" "Sure."

She suggested that if I can't find old tax documents, then maybe I could get the info from old W-2s. We haven't had W-2 employees for years, though. More spelunking required.

"If you have a new name and a new address, then you should probably just get a new EIN." That's an instant turnaround over the Internet. Sooooo ... I've done this. Gratipay, LLC has a new EIN. We will need to notify relevant vendors of the change.

[chadwhitacre]

To: Braintree

I called the IRS, and it turns out that the address we used to file for our EIN 13 years ago may be lost to the sands of time. Since both the name and address of the company have changed, they advised me to apply for a new EIN. I've done this, and our new CP575 is attached. Does this suffice?

[chadwhitacre]

I bet I have the original CP575 somewhere ...

[chadwhitacre]

From: Braintree

Thanks for reaching out and sending over documentation! At this point we have reached out to our banking partner with the information that you’ve provided and will continue to keep you updated if any additional information is required. While we will continue to work with you to get this updated and do our best to avoid any interruptions in processing, I do not have any additional information at this time. In the meantime, if you have any additional questions feel free to contact us.

[chadwhitacre]

To: Braintree

Any update on this, []?

[chadwhitacre]

From: Braintree

I have not received any additional information at this time. However, I will notify you as soon as I do!

[chadwhitacre]

To: Braintree

Okay, please let me know as soon as possible if the CP575 I provided isn't going to work. We've got a lot of moving parts with our migration and the prospect of having Braintree terminate our account right as we're coming online is a significant risk, to say the least. If we are going to need to jump through more IRS hoops I'd like to know as soon as possible. Thanks! :-)

[chadwhitacre]

P.S. I search a bit for the original CP575, and did not find it. If Braintree comes back negative one option would seem to be to search more thoroughly.

[chadwhitacre]

From: Braintree

Thank you for your patience! Our banking partner has approved the information and documentation you provided. In its present condition, your account’s processing will not be disrupted. If any additional information is required we’ll reach back out to you.

Thank you for your cooperation!

To: Braintree

What a relief! Thank you, []! :D

By the way, we processed payments on our Braintree account for the first time yesterday. We are off and running! Thanks for all your help getting off the ground! :D

😌

[chadwhitacre]

It’s my pleasure! Congrats on processing for the first time!! :) We are so happy you decided to chose Braintree to power your website!

Please let us know if you have any additional questions.