My friend is a consultant and helps people boost there business profit. She has one client who wants her social. Noone has ever asked for it before. She is just paid by check from her other clients and does her own taxs. Her accountant is i in Europe of the next month and she doen't understasnd this and is naturally hesititant to give it out with the incidence of identy theft etc. Can someone give me someinfo on this for her. We are in California.
2007-01-24 12:20:24 · 5 answers · asked by onedot.darling 4 in Business & Finance ➔ Taxes ➔ United States
Okay I have recieved some answers...so now I want to know if you pay someone like your Doctor to give you Botox or go to the hairdresser more then normal for the same reason... to look good in ones profession would that be a deduction and can't you ask for his/her s s# then as it would be way over the 600.00 per year. or even ones tax man would be over that and she doesn't get his ss# or an attorney. how is it different? .
2007-01-24 12:55:48 · update #1
Okay I have recieved some answers...so now I want to know if you pay someone like your Doctor to give you Botox or go to the hairdresser more then normal for the same reason... to look good in ones profession would that be a deduction and can't you ask for his/her s s# then as it would be way over the 600.00 per year. or even ones tax man would be over that and she doesn't get his ss# or an attorney. how is it different? .
2007-01-24 12:55:50 · update #2
Some companies ask for social security numbers regardless of whether or not they pay $600 or more. The reasoning is that if they need that subcontractor (consultants are considered subcontractors) again then they're prepared if they do pay $600 and have to issue a 1099. Some companies even issue 1099's to subcontractors who earned less than that during the year.
Whether or not she makes enough to be issued a 1099, it is perfectly acceptable, even encouraged, to ask for a tax identification number from any prospective vendor. A social security number is just a personal tax id number rather than a business one. Having a tax id number is one way to help ensure that you're doing business with a reputable company/firm/individual.
2007-01-24 12:43:32 · answer #1 · answered by datette 3 · 0⤊ 0⤋
If your friend does a lot of consulting, she should consider another entity, such as LLC or corporate form for doing business. Then SSN isn't necessary for income payers.
Consult an accountant or Enrolled Agent for specifics and whther this strategy will work as part of an overall tax efficiency strategy.
Enrolled Agent / Tax Advisor
2007-01-24 12:34:52 · answer #2 · answered by WealthBuilder 4 · 0⤊ 0⤋
They are probably asking her to fill out a W-9 form so they can send her a 1099 for her consulting fees. This isn't unusual. If she has an EIN for her business, she can give them that instead.
2007-01-24 12:31:41 · answer #3 · answered by Judy 7 · 1⤊ 0⤋
If she was paid more than $600 by her customer, the customer is supposed to issue her a 1099 showing the payments. To issue her a 1099, they need her SSN.
2007-01-24 12:30:09 · answer #4 · answered by jseah114 6 · 1⤊ 0⤋
She must provide her TIN (SSN in this case) upon request. They're probably going to cut a 1099 and they need her SSN for that.
Her accountant has probably been handling that for her. It's standard practice -- and it's the law, by the way.
2007-01-24 12:35:01 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋