customer wants my SSN# so he can 10-99 me?

Merry Christmas
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1793

Senior Member
You may be able to get an ITIN number from the IRS so you don't have to give out your SSN.

http://www.irs.gov/pub/irs-pdf/fw7.pdf

For reason, check 'other' and simply indicate that you do not want to disclose your SSN to your customers.

Once you get your 9 digit ITIN, that can be used as your payee ID number on the 1099 instead of your SSN.

I looked up "Federal Tax ID number" at the home page for the IRS: WWW.IRS.GOV and the ITIN starts out:

An ITIN, or Individual Taxpayer Identification Number, is a tax processing number only available for certain nonresident and resident aliens, their spouses, and dependents who cannot get a Social Security Number (SSN). It is a 9-digit number, beginning with the number "9", formatted like an SSN (NNN-NN-NNNN).

Don't know if this is really what you need or want.

Good luck
 

AV ELECTRIC

Senior Member
I have done this all the time filled out w-9 give it to the business and they send me a 1099 . Its a good idea to have the 1099 when you have your taxes so your accountant enters it in on your taxes and of course keep it with your taxes .
 

satcom

Senior Member
I must be really lost, but all you need to supply him with is an invoice.

You are in business, is that right?
 

cowboyjwc

Moderator
Staff member
Location
Simi Valley, CA
It was a rental. It was $1000 something. I never had a customer do this before. I pay all my taxes, and would include this too anyway. So what's the point of me giving him this info? Will I pay something extra if I give him this info?

He's doing it to increase his "outgo" so he can reduce his "income". You may have already paid on it, but you will have to prove to the IRS that you did.

When did you do the work? He may be filing on his fiscal year or paying his quarterly taxes.
 

growler

Senior Member
Location
Atlanta,GA
It was a rental. It was $1000 something. I never had a customer do this before. I pay all my taxes, and would include this too anyway. So what's the point of me giving him this info? Will I pay something extra if I give him this info?


You won't pay anything extra, and yes some companies will require a form W-9 when setting up an account. It's really for an unincorporated business but some companies have been advised to get this information even from incorporated subs because there are a lot of bogus corporations out there.

If you look at corporate records around here you will see half are not in compliance. There lots of small time outfits that will incorporate and then not file the necessary paperwork to be in compliance. I'm not sure how it gets handled when that happens as far as taxes go.

The guy just wants to send you a 1099 to cover himself and his expenses ( and maybe sell your SSN on Ebay:grin:).
 

Ohmy

Senior Member
Location
Atlanta, GA
This time of year through Feb we get random 1099 forms in the mail every couple of days from clients. I don't understand why people do it, I guess it makes them feel safe. We just collect them and file them with our annual return.
 

jim dungar

Moderator
Staff member
Location
Wisconsin
Occupation
Retired Electrical Engineer - Power Systems
This time of year through Feb we get random 1099 forms in the mail every couple of days from clients. I don't understand why people do it, I guess it makes them feel safe. We just collect them and file them with our annual return.
According to my accountant (my wife) briefly:
You do not have to do any thing with a 1099 which someone gives you.
The company providing the 1099 faces an IRS penalty if they do not send them out. The deadline for supplying 1099's is roughly the middle of Feb.
 

Sierrasparky

Senior Member
Location
USA
Occupation
Electrician ,contractor
Yo uget them because it is a requirement for a buisness to send them out if they want to claim the expense on their taxes. I don't know what the threshold is but I can assure you that a company will not want to loose out on a legitimate expense deduction. I hear there is a fine if you fail to send these out.
 

ty

Senior Member
If you were to get audited by the IRS, they would subpoena all of your bank records that would show all of your deposits.

If you didn't claim the $1000 then, you would now, as, unless you can prove beyond a doubt otherwise, all deposits would be counted as taxable income.
 

rodneee

Senior Member
i don't know all the details of your work relationship with the customer but i think he is misinterpreting the requirements of the tax laws. they probably were told they must do this and made it a company policy. if the work and pay are good i would just give it up rather than try to prove them wrong. (WIN THE BATTLE AND LOSE THE WAR).
 

George Stolz

Moderator
Staff member
Location
Windsor, CO NEC: 2017
Occupation
Service Manager
You won't pay anything extra, and yes some companies will require a form W-9 when setting up an account.
So this is solely to weed out fraudulent businesses?

This has had me confused ever since I first heard of it. In order to get "set up" with a number of businesses, they immediately ask for W-9s. Since I don't actually personally generate that information for the customer, I've only paid a passing interest in it.

I could understand that when we get "in bed" with a GC that some sort of formal relationship should be on file for some odd reason, but the concept of getting this same level of paperwork with random businesses just seemed exceedingly odd to me.

I can't see why XYZ Inc can pay ABC Inc to perform a service, but can't allow Joe Blow Esq to perform the same service for the same money. It is money spent by XYZ to achieve something - the fact that XYZ spent the money, and they have a receipt to show that something has been received, shouldn't that be sufficient? Who cares who performed the service?

One more reason I'd never own my own business.
 

growler

Senior Member
Location
Atlanta,GA
So should I give him my SSN#, or tell him to go fly a kite.:grin: Thanks for your help.

I don't have a ID#. I wasn't required to being a sole perpriator. So don't give him my SS#. And really as long as I claim it as income who cares about him right?


Download a copy of form W-9 from the IRS web site and read it. It does state that the customer can request it and you are required to furish the form W-9 with either your TIN or SSN and explains the penalty for not furnishing the requested information.

If you download the form you can fill it out on your computer and it looks more neat. Buy the way the IRS from time to time comes out with a new version of this form. Download the lastest version you can find because many bussinesses keep the old version on file. You are required to date and sign it so it is an official document.
 

growler

Senior Member
Location
Atlanta,GA
I could understand that when we get "in bed" with a GC that some sort of formal relationship should be on file for some odd reason, but the concept of getting this same level of paperwork with random businesses just seemed exceedingly odd to me.


They don't know how much work you will end up doing for them. You may only do one small service call or you may end up being called a half dozen times. It's easier to get all information up front. It's also easier for you to get their information up front and avoid confusion later.

What if they wish to pay you and find out that you are not even a business and they have no provisions for paying individuals that are not employees.

That form w-9 is an official document and it is illegal to give false information on it. You can't blame a company for covering themselves as much as they can, even if they ask for proof of insurance and license and all sorts of things. Your boss may have asked you to urinate in a cup, was that really necessary, it is at times.

No one can force you to give out any information but just like getting a job if you want to do the work you have to follow any reqirements made by the company. You can always tell them you are not interested in the hassles.
 
Both my CPA and a friend who works for the IRS tell me that the only way to give someone else your SSN/TIN/ETC/etc is on a W-2 for an employee or a W-9 for everything else. Using those forms has a legal expectation of privacy, that is, they're supposed to be handled like personnel records- kept in a locked file cabinet separate from general business records and accessable only to persons that actually need the info. Since the other party is only supposed to have the info on file, but should never actually use it on other forms, the one you submit should probably never see the light of day unless an audit happens.
 

brantmacga

Señor Member
Location
Georgia
Occupation
Electrical Monke
every GC i've worked for sends 1099's; for future reference, request an EIN when you file your articles of incorporation. some like to know ahead of time whether or not a 1099 will be sent. this can help determine wether the check will be cashed or deposited.
 
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