Social security number or EINQuestion In this age of identity theft, does an independent contractor have to give his/her Social Security number to a customer?
Answer Yes, unless you have an employer identification number (EIN), also known as a Federal ID number. An EIN is given to customers and clients in lieu of a Social Security number. Either number is required by the IRS for reporting and tracking income paid (above certain amounts) by one entity to another.
Be sure to include your EIN on Schedule C of Form 1040, so IRS computers can match the income reported on the Form 1099-MISC. To obtain an EIN, go to http://www.irs.gov/businesses/small and follow the instructions. Search again for more on this topic. 
Brain Trust contributor:
Author of J.K. Lasser's Small Business Taxes 2007
© 2007, Small Business Network, Inc., All Rights Reserved.
Subject to the Terms of Use of AskJim.biz |
    AskJim ID: 505
|
 |
|
|
Small business answers — NOW!
Ask your business question:
|
©Copyright 2009-2012 by Small Business Network, Inc.