The Small Business Tax Help Blog

Posts Tagged ‘irs gov ein number’

Question: Am I eligible for an Employer Identification Number?

I currently run a website and I am a member of many affiliate programs to try and make some extra cash. In order to claim my earnings, some of these websites want my Social Security Number or an Employer Identification Number for tax purposes. I do not have an EIN number and would rather give that out instead of my SSN if possible. I visited www.irs.gov but I’m confused on the qualifications for an EIN. Considering my circumstances, I am eligible to receive an EIN?

Answer: While I understand you reasons for wanting an EIN, my understanding of tax law is that you must have a tax reason for doing so; excise tax returns, Employment Tax Returns, corporate or partnership returns. If you are a sole proprietor you don’t need one unless you are filing some kind of excise tax or employment taxes, the privacy of your SSN is not one of those reasons.
If you really want one call the toll free number and tell the assistor you are hiring employees.
I usually provide a link for my answers so the asker can have confidence that i know what i’m talking about but this time i couldn’t find one.

IRS Showcases Small Business Tools

To mark Small Business Week, the Internal Revenue Service is highlighting the tax benefits and resources available to small businesses this year.

Question: What’s the difference between a “Resale license” and a State Tax ID number?

I live in Texas and am launching an official eBay business and am trying to get my head around all of the licenses, permits, and ID numbers I have to have.

I’ve applied for and EIN from www.irs.gov and a Sales Tax ID number with my state. I have the EIN and am waiting to receive the sales tax ID number.

My question is, is my state tax ID number what they refer to as a “resale license”? If not, where do I get a resale license in Texas? Do I need a business permit to operate? I don’t have a storefront; I just list auctions from my apartment and will store my inventory in a spare closet. Any help would be greatly appreciated.

Answer: Your Sales and Use tax number is utilitized for what you are calling a resale license. The form is really called a Sales and Use Tax Resale Certificate. You issue these to the vendor for goods purchased for resale- this allows the vendor to not charge sales tax to your company. you can go to the Texas website and download the form. Business Licenses are obtained from local (city) government and you do need one.

11 Essential Online Resources for Consultants

This post originally appeared on the American Express OPEN Forum , where Mashable regularly contributes articles about leveraging social media and technology in small business. One of the keys to being a successful consultant is information — having…

USA ~ army v people

Question: Can I amend an Estate SS-4 from Calendar to Fiscal Year? How?

I am executor of my Dad’s estate. When first applying for the EIN, I made the estate a calendar year entity without realizing the tax consequences. I would have several more months before having to deal with tax issues if I could amend the SS-4 from calendar year to fiscal year reporting. Can a qualified YA member tell me how? I have searched the engines and the IRS.gov site.

No offense, but only those with qualifications to answer please. Thanks all.

Answer: You don't need to 'amend' the SS-4, as it does not bind the estate to the tax year you chose. The only thing that binds the tax year is the actual filing of the first tax return (form 1041). This is true even if you've already filed an extension showing calendar year.

That said, the IRS does have in its computers that the estate is a calendar year, so will assume the return is late if it doesn't receive anything by April 15. If you get a letter asking for a return, don't worry. Just file the return for the year you want.

Note that the first tax year cannot be longer than 12 months. For example, the tax year for the estate of a person who died April 7, 2007 could end at the end of any month from April 2007 through March 2008.

One last thing, the above all refers to the INCOME tax returns of the estate. Generally, an estate tax return must be filed on Form 706 as well, if the estate had gross assets in excess of the applicable exclusion amount ($2,000,000 for 2007).

Tax tips new business owners

Here are six tax tips the IRS wants new business owners to know:

Question: Sales Tax ID is the same thing as a Tax ID (EIN), right?

I just got my tax ID through here:

http://www.irs.ustreas.gov/businesses/small/article/0,,id=98350,00.html

So a ’sales tax ID’ is the same thing as a tax ID, right?

Answer: Not necessarily - it depends on your state and how you established your business with the state.

News Briefs

Highway 4 was closed to vehicular traffic south of Nahariya starting at 3:00 p.m. due to the march on behalf of abducted Israeli soldier Gilad Shalit.

Edison Kinetoscopic Record of a Sneeze, Jan. 7, 1894