Hello BP friends,
I have a business (s-corp) that has been sponsoring for many years a SOLO 401k Plan. The business and the plan each have their own EIN. As a plan trustee, I am selling a rental property owned by the plan, and will deposit the sale proceeds back into the plan. The title company is asking me to fill out the 1099-S to report this property sale, but I am not sure which EIN to write on that form: of the employer (plan sponsor) or of the tax exempt plan?
Every year I file an annual 5500EZ form for the 401k plan, on which I write the EIN of the business (plan sponsor), not of the plan itself, because that's what the instructions clearly indicate. However, this is the first time I prepare a 1099-S form for a 401k plan but I do not see a clear instruction on which EIN to indicate for a 401k plan scenario.
Any help is highly appreciated. Thanks in advance.
The plan is the seller therefor the PLAN's EIN is the one to be listed.
You are correct that for purposes of the 5500-EZ, the IRS is looking for the tax ID of the Plan Sponsor (your S-Corp).
When the plan itself is transacting, such as selling a property, the plan EIN should be used. This way the IRS will receive the 1099-S and identify the transaction as occurring within the tax-sheltered plan.
Thank you for the answers.