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The company I work for all of the sudden has requested that I have an EIN number. The IRS doesn't require it under my circumstances. Why would they require this and can they do this?


ANSWER


Expert Barbara Blacklidge's Answer:

EIN numbers must be used by business entities, i.e., corporations, partnerships, and limited liability companies.   Sole proprietors do not need to obtain an EIN number and can use their Social Security number.  However, using an EIN number helps to show that you’re an independent contractor and not an employee.
 
Please let me know if you require further information or clarification.
 
Thank you and best regards, Barb
 
References: IRS Publication 1635 & IRC Section 6109

Barbara Blacklidge, EA

Florida

17 yrs experience

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