Business tax id not social security number

I'm a military contractor overseas in Afghanistan. I am working for a company and i filed a W9 with them. But the company im working for said i have to use my own social security number and not my business tax id because i am a Intermittent Employee. Is this true, i know military contractors who have used themselves under their business tax id number. What do i need to show the company im working for to use my business tax id instead of my social security number, since i filed a W-9 with them. Help Cord Swerny Military contractor and Owner of Two Aces Tactical AZ

Reply to
Twoacestacticalaz
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It's not about what you show them, but about the kind of relationship you have with them. The more control they have over when, where and how you do work for them, the more likely you are to be considered an employee by law. The less control, the more likely you are to be considered a contractor.

You can read more about this in IRS Publication 15-A:

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One way to short-circuit the whole thing is to set up a corporation (or an LLC, but a corporation is probably better on this point) to contract with them. A corporation is never an employee.

Reply to
Stuart O. Bronstein

If you are a sole proprietor, then you do in fact use your SSN and not your EIN on the W9. You use an EIN for other purposes (most retirement plans, hiring employees of your own, etc.) But the W9 uses your SSN, as do the

1099's coming back from them to you.

The confusing thing is their use of the phrase "intermittent employee".

If they are simply asking you to replace the W9 with one that uses your SSN, you are probably okay. If they are asking your to give them a W4, then they are trying to make you an employee and you need to deal with that.

Steve

Reply to
spope384

If someone actually is an independent contractor, there is nothing wrong with using an EIN instead of a Social Security Number. In fact that's what I normally recommend that people do in that situation, to avoid spreading their SSN all over the place and reduce the chance of identity theft.

There are some situations where someone can be both an employee and contractor at the same time, with some tasks being done as an employee and others as a contractor. I've mostly seen this in the real estate business, where a managing broker is considered an employee with respect to his management duties, but a contractor with respect to his acts as a sales rep.

Reply to
Stuart O. Bronstein

I agree there is nothing wrong with doing this, however IRS Pub i1099gi states that "The IRS prefers that you enter the SSN", so it is normal for a business to ask for the SSN of its sole-proprietor contractors.

Steve

Reply to
spope384

There is no form 1099gi. There is a 1099-G, but the instructions for that form do not refer to a W-9. Likewise I have found no preference for a SSN to an EIN in the instructions for Form 1099-Misc.

Unless someone is actually an employee by law, that person has every right to provide an EIN instead of a SSN. In OP's case the fact that they claim he is an "intermittent" employee shows that they understand that.

Reply to
Stuart O. Bronstein

You would think so, but more than once I've provided my EIN and they've written back and said that's the wrong number and they'd only accept my SSN.

I presume there's some EIN validation service that doesn't like me but I've never been able to get details.

R's, John

Reply to
John Levine

I wrote "IRS Pub i1099gi" which is a publication not a form, and which states the above. This is a publication that contains instructions for filers of 1099's.

(Look again?)

Okay, but if the customer prefers an SSN, by reason that the IRS also prefers an SSN, is it really wise to fight the customer over this?

I think it's unclear what they meant by this, and that the OP needs to find out what they meant.

Steve

Reply to
spope384

Well, a TIN has the same number of digits as a Social Security Number - it's just organized differently. Write in your TIN in the form of an SSN.

The IRS offers that service:

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Reply to
Stuart O. Bronstein

The exact quote is,

"Sole proprietors. You must show the individual's name on the first name line; on the second name line, you may enter the ?doing business as (DBA)? name. You may not enter only the DBA name. For the TIN, enter either the individual's SSN or the EIN of the business (sole proprietorship). The IRS prefers that you enter the SSN."

If you want to unnecessarily expose yourself to identity theft, go right ahead.

Reply to
Stuart O. Bronstein

I go to a lot of cops+nerds conferences, and can report that there is so much personal financial info floating around in the criminal underground that one more SSN will make no difference at all. The term of art is "fullz" for the full personal info you'd need to set up a financial account.

The chokepoint is turning the info into anonymous cash, not getting the info.

Reply to
John Levine

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