Obtaining FED TAX ID# from customers?

Question

Is it necessary for a business to obtain the Federal Tax ID# from its commercial customers for record keeping purposes? Is this true ? Source would be much appreciated. Thank you

Answer 1

No. you will need the tax i.d. # of those you PAY, so you can
issue a form 1099 to them at the end of the year, if you paid
them $600 or more. go to irs.gov for 1099-misc instructions.
your customers might ask you for your tax i.d. # so they
can issue a 1099 to you at the end of the year.

Answer 2

In general, No. Totally unnecessary.

An exception to the rule is sales tax. Collecting sales tax from customers requires a
W-9 to be filed, indicating the Employer Identification Number and Resale Certificate Number, and whether the customer is exempt from federal withholding.

Another exception is collecting information from foreign sources of income.

Answer 3

The other answer is correct except you do not need tax ID numbers from corporations that you pay. They are exempt from getting 1099's. Individuals and partnerships and LLC's are not exempt so you need those tax ID's.

Answer 4

You need the tax IDs of vendors that provide services for you. You generally don't need the tax IDs of customers or vendors who supply goods either for consumption or resale.