Another Draft W-9 Released in May — EIN Prohibition on Individuals is Gone The IRS in May released another draft of a new W-9, and this draft removed the prohibition on an individual/sole proprietor from using an EIN. In this latest draft, the only thing listed under “What’s New” is a new backup withholding exemption…
Listen to or watch the podcast on this episode: https://podcasts.dinesenmedia.com/show/information-return-intelligence-1/latest-w-9-draft-irs-reverses-course-on-sole-proprietor-ein-rule/ The IRS on Monday released another draft of a new W-9, and this draft has removed the prohibition on an individual/sole proprietor from using an EIN. In this latest draft, the only thing listed under “What’s New” is a new backup withholding exemption code that…
Let’s look at how the IRS uses the information off the 1099s you file. We wrote about this in part 1 of “Dealing with Corrections,” and it’s a good encapsulation. When you file 1099s with the IRS, they put that information into their databases. In other writings, we delve into “how” they catalogue the information,…
Someone recently asked me why so many accountants and tax pros — CPAs, EAs, etc. — tell single-member LLCs to enter the LLC’s EIN on a W-9 instead of the owner’s Social Security Number. Now, you might read that paragraph and wonder, “What are we even talking about here?” So, let’s start by breaking it…
