Just got a $27,000 personal tax bill for creating a Square account for a nonprofit

Hi there. We opened a Square account for a registered nonprofit, a folkdance organization that organizes dances and camps and other events. Our treasurer (a CPA) has been duly reporting our Square income as required to the IRS, but I personally just got an overdue tax bill for $27,371 because they think that I personally took in $35,971 through Square in 2017. Presumably this is because I used my SSN to open the account, but I didn't see a way to open an account without doing so.

 

How can I change my account so the IRS knows this money is going to a nonprofit, not to me, and how can I let the IRS know that our organization has already paid these taxes and I don't owe them anything?

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Square Champion

yes since you used your SSN it is tied to you.

 

you can set up Square to have an EIN or FEIN on file for the account so that it isn't tied to your personal after creating the account.  per the PATRIOT Act, the account must be made by a real person that is validated.

 

https://squareup.com/dashboard/business/taxes

 

https://squareup.com/help/us/en/article/5380

 

as for fixing past due taxes that you would have to take up with your accountant or lawyer as I wouldn't want yo take advice from strangers on the internet about such an important issue that varies from state to state and even county to county.

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