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Responsible-party rules — codes 103 and 115

Who counts as RP, what to do when the prior RP is deceased, and how third-party designees actually work.
Related · code 103Related · code 115cite26 CFR §301.6109-1

Definition

RP is the natural person who controls the entity

The IRS defines the responsible party as the individual who ultimately owns or controls the entity, or who exercises ultimate effective control. It's a person, never another entity.

Deceased RP — code 115

Use the successor

When inheriting a business, the prior owner is not the RP for the new EIN application. The successor (executor, beneficiary, new owner) is the RP, with their own SSN/ITIN.

Expectation-setting
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Related codes