Protect Your Identity on 1099s December 1, 2011
Protect Your Identity on 1099s
I am happy to share this guest blogpost, written by my LinkedIn friend who is a financial coach. Her name is Jayn Krasco Stillson. She has provided some valuable tips on how to reduce identity theft by making quick work of getting a Tax ID# which for your small business. ~ Mary Lascelles
“Hello all. I’ve had a couple conversations recently about identity theft, and thought I’d offer a simple tip to help protect small business owners (sole proprietors). This would be someone who conducts their business either in their own name or has filed a dba (doing business as) certificate, not someone who has an incorporated business.
If neither you nor the service provider has a tax identification number, both of your SS#s must be used on the 1099 that is filed with the IRS. This means that you have each given someone you may hardly know the most important number in your life. Not only that, you have no idea who might have access to the copies of that form that are kept on file. (Anyone from the cleaning staff to clerical staff to someone’s family member rummaging through a home office would have your name, SS# and address.)
This problem is so easily solved by obtaining a tax identification number from the IRS website. The IRS refers to it as an Employer Identification Number or (EIN). You can obtain one by clicking on this link, clicking on the “Begin Application” button and following the instructions. https://sa2.www4.irs.gov/modiein/individual/index.jsp
Note that an EIN does not trigger any additional mail from the IRS. You don’t have to have employees and you are not required to file any special tax forms as a result of obtaining the number.”
This is such an easy way to avoid sharing your SS# with those your do business with. If you have any questions or need assistance completing the form on the IRS website, don’t hesitate to call or email me. (Jayn@Jaynyk.com 781-665-0895)…I’m happy to help.
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