One of the biggest concerns of President Bush’s proposed budget is the requirement that internet firms collect and report personal data, including Social Security Numbers (SSN), of its customers to the IRS.
One way to get around having to submit your SSN to a company is to get a tax identification number. As a business owner (whether you are a sole proprietor, LLC, or a corporation), you can apply for an employer identification number, also known as a tax ID number.
Although you may not be required to have a tax ID number (see ‘Do you need a tax ID number for your eBay business?’), it may be a good idea to get one if this proposal passes.
If President Bush’s budget passes, including the proposal that internet companies collect personal data from customers, simply provide the internet company with your new tax ID number instead of your SSN.
Click here to apply for a tax ID number, or visit the IRS website and search for ‘employer identification number’.
For more great eBay tax tips, please read our free special report, Tax Tips for eBay Sellers.
Tags: income tax, ebay tax, tax identification number
