Discussion:Do you need an EIN when paying 1099s out?
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Discussion Forum Index --> Tax Questions --> Do you need an EIN when paying 1099s out?
Www.cpa1.biz (talk|edits) said: | 15 January 2007 |
| Almanacers,
I know you need a EIN when paying employees but do you need one when paying 1099s out. My client is a sole prop and I need to know if he should get an EIN right now. Thanks, Bj | |
| 15 January 2007 | |
| A sole prop. with no employees is not required to have an EIN. The SSN of the owner of such a business should be used for the payor on 1099s. -- Larry Hess, CPA, Albuquerque, NM - Talk to me | |
| 15 January 2007 | |
| NO ... as a SP he can send out 1099's under his Social Security number. I have many small businesses with no employees and they file using their S/S numbers. | |
Www.cpa1.biz (talk|edits) said: | 15 January 2007 |
| Thanks a lot guys | |
| 15 January 2007 | |
| The 1096 transmittal has a box for employer's social security number
to cover these cases. | |
Bottom Line (talk|edits) said: | 15 January 2007 |
| But do you want all those people to have your ssn? | |
Death&Taxes (talk|edits) said: | 15 January 2007 |
| I have clients who will not put their SS # on checks to the government for fear those people at IRS will steal it. I had one call me last year when I mailed her check with an extension and wrote her number on it. | |
| 15 January 2007 | |
| If client does not want to use his social he can apply for an EIN. What does it take, five minutes. You can't file the 1096 without a number. | |
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