New Law Requires All Members of a Limited Liability Company to Disclose Tax ID Numbers (Even for Non-Managing Members)

Effective Monday, May 18, 2015, New York City’s Department of Finance implemented material changes in connection with the preparation and filing of the City’s Real Property Transfer Tax Return (“NYC-RPT”) in its Automated City Register Information System (“ACRIS”). Previously, parties were only required to disclose the name and social security numbers (“SSN”) or employer identification numbers (“EIN”) of the actual parties to the transaction. For all transactions occurring after May 18, 2015, NYC-RPT has been revised to include two new additional “Grantor” and “Grantee” types: (1) Single Member LLC and (2) Multiple Member LLC. For any grantor and grantee that is a partnership or limited liability company, the revised form requires the names of all general partners or members of the grantor or grantee, regardless of percentage of ownership interest or level of management control, as well as such partner/member’s SSN or EIN.

If your entity will be closing a transaction in which a NYC-RPT must be filed (this includes any transfer of real property in New York City), you will need to provide the individual preparing the NYC-RPT with a list the names of all general partners or members and a list of their individual SSN and/or EIN numbers. If the names and/or SSN/EIN numbers are not provided, ACRIS requires that an affidavit attesting to the reason(s) for the missing information be included with the filing. Failure to comply with this new requirement will result in the rejection of your tax return and the potential imposition of interest and penalties.