They need to use your EIN

Posted By: MTSO on 2006-11-11
In Reply to: I have 2 questions for people who own their own company - Wondering

I have a long-time client who just didn't want to make the switch. We got a letter from the IRS because they showed we had misreported our personal income. The accountant hadn't noted the discrepancy and I didn't consider it a problem. Well, it is.

If they don't use your EIN instead of your SSN, the income will go to the IRS as your personal income, not business income.

We had to have the client issue revised forms and write a letter to the IRS.

Because of writeoffs, etc., the tax rate on my business is much lower than my personal income. I don't know about you, but I'd rather have the income reported in the lower tax bracket!

Complete Discussion Below:

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I have 2 questions for people who own their own company - Wondering
- They need to use your EIN - MTSO
  - EIN vs SSN - Patti
- Granted I am no CPA, but I think you would - sm - XXX
- My husband is a CPA, and I can tell you stories! - Get outside
- Acct fee is a tax deduction. Find a good one. - nm
- Don't worry about what you have to pay an accountant. You'll make it up - in what s/he saves you. nm - Hanib
- Check with accountant - Patti
- You really need a good accountant. sm - Small MTSO

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