EIN for 1099??

Question

My wife has a very small pottery business, grossing less than $4k per year. She has no employees. She is a sole proprietor and has been reporting her pottery income for the past 8 years using Form

1040/Sch.C She wholesales her pottery to a crafts shop owned by another person. With the new 1099 requirements, assuming they aren't repealed, I expect that she will need to provide a tax number to the retail shop so they can send her a 1099 to account for their payments to her.

For privacy reasons, we do not want to give the shop her SSN. If she obtains an EIN to be given to the retail shop and entered in Sch.C/Line-D, will that suffice? Can an EIN be used for this purpose? The instructions for Sch.C/Line-D don't say anything about using the EIN for 1099 purposes.

Thanks for any comments.

removeps-groups · Accepted Answer

I think under current law she has to provide her taxpayer indentation number if she receives more than $600. Under current law if a sole proprietor or contractor provides more than $600 in services they have to receive a 1099-MISC. It doesn't seem to be widely enforced.

Yes, you may use an EIN. Also put in the EIN number on Schedule C.

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Vic Dura · Answer

On Sat, 29 Jan 2011 15:52:33 EST, "       " wrote Re Re: EIN for 1099??:I guess it really isn't being enforced yet.  She doesn't actuallyprovide "services".  She hand-makes pottery and sells it to the shopwhich in turn sells it to the public.  The shop has never asked for aTIN and she has never received a 1099.  However, I want to be preparedfor whatever changes the future brings.

Wilson · Answer

On 01/29/11 12:21 PM, sometime in the recent past Vic Dura posted this:

I have seen 1099-MISC forms with an EIN or a SS# in the 'Recipient's ID number' box. Also, my software will accept either, so my answer to your question is 'YES' you can use the EIN in place of the SS# on the W-9 she sends to the retail shop.

John Levine · Answer

I'm a sole proprietor and I've been putting my EIN on 1099s for decades. So far, so good.

Regards, John Levine, snipped-for-privacy@iecc.com, Primary Perpetrator of "The Internet for Dummies", Please consider the environment before reading this e-mail.

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EIN for 1099??

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