Ebiz Tax Tips » employer identification number http://www.internetbiztaxtips.com Tax Tips for eBay sellers and other online business owners Wed, 25 Jan 2012 15:11:57 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 W-2s and 1099s Due Monday! http://www.internetbiztaxtips.com/2009/01/w-2s-and-1099s-due-monday/?utm_source=rss&utm_medium=rss&utm_campaign=w-2s-and-1099s-due-monday http://www.internetbiztaxtips.com/2009/01/w-2s-and-1099s-due-monday/#comments Sat, 31 Jan 2009 20:55:31 +0000 Kristine http://internetbiztaxtips.com/?p=418

irsIf you have employees or independent contractors, you only have a few days left to prepare and issue W-2s and 1099s for them.  January 31 is the official due date, but since it falls on a Saturday this year, you have until Monday February 2 to complete your forms.

Just to be clear, employees get Form W-2, independent contractors get Form 1099-MISC reporting their income.

Since most of the people visiting this blog are more likely to have independent contractors than employees, we will focus on the Form 1099-MISC for the rest of this post.

Do you need to prepare Form 1099 for anyone in your business?

Basically, you must prepare a 1099 if you paid $600 or more to an individual to perform services for you.  Some examples would be web designers, eBay assistants, virtual assistants, affiliates, accountants, etc.

You should get the name, address and social security number (or Federal EIN) from any person you expect to send a 1099 for.

You need to send copies of the 1099 to the recipient, the IRS and the state tax department.

While you can buy the forms and prepare them manually, I prefer to use an online service called www.FileTaxes.com.

For more help, please read:

Should I File a W-2 or Form 1099?
Instructions for Form 1099-MISC

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]]> http://www.internetbiztaxtips.com/2009/01/w-2s-and-1099s-due-monday/feed/ 3 Get Your EIN Online – Free http://www.internetbiztaxtips.com/2007/10/get-your-ein-online-free/?utm_source=rss&utm_medium=rss&utm_campaign=get-your-ein-online-free http://www.internetbiztaxtips.com/2007/10/get-your-ein-online-free/#comments Wed, 03 Oct 2007 18:16:50 +0000 kamckinley http://internetbiztaxtips.com/2007/10/get-your-ein-online-free/

Just a quick note to let you know that you can now apply for your Employer Identification Number (EIN) online.

This is a free tool on the IRS website.   Please, don’t be fooled by companies who try to charge you to get an EIN.  Applying for an EIN has always been free, and now it’s even easier since you can do it online.

Click here to apply for your EIN online at the IRS website. 

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]]> http://www.internetbiztaxtips.com/2007/10/get-your-ein-online-free/feed/ 0 How to Get an Employer Identification Number http://www.internetbiztaxtips.com/2007/07/how-to-get-an-employer-identification-number/?utm_source=rss&utm_medium=rss&utm_campaign=how-to-get-an-employer-identification-number http://www.internetbiztaxtips.com/2007/07/how-to-get-an-employer-identification-number/#comments Sun, 29 Jul 2007 13:53:34 +0000 kamckinley http://internetbiztaxtips.com/2007/07/how-to-get-an-employer-identification-number/

Lately, I’ve had several clients contact me to say that they had to pay a fee for their Employer Identification Number (EIN). 

This was perplexing to me, since applying for an EIN has always been free.

So, I did some research, and discovered that if you do a web search for EIN, you may be taken to a company website that charges a fee (average seems to be $150-200) to apply for an EIN.

Now, I suppose that if you are in a hurry and need your EIN immediately to apply for a bank loan or if a big client is requesting an EIN before they will hire you, it might be worth it to pay the fee to expedite your application.

But if you are applying for an EIN because you are starting a new business, or you are incorporating or chaning your business entity, and you don’t need the EIN right away, I don’t see any reason to pay up to $200 for an EIN. 

So, how do you get your EIN for free?  Just go to the IRS website, at www.irs.gov.  Once at the IRS website, click on SS-4 under Most Requested Forms.

For instructions on how to complete the form, and where to mail (or fax) the completed form, download the instructions for Form SS-4 at http://www.irs.gov/pub/irs-pdf/iss4.pdf. 

The form only takes a few minutes to complete, and best of all, it’s FREE!


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