tralynnme Wrote:
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> Would anyone care to give opinions, feedback, on
> the idea of companies requiring shoppers to obtain
> an EIN from the IRS, and to pay for Background
> Checks?
>
> I've been performing shops for approx. 20 clients,
> for years, and I've not quite decided if I want to
> sign up with new companies that require these
> things. I'm not so much bothered by a background
> check - mine would be completely clear - but I
> wonder if the cost is worth the investment?
>
> And obtaining an EIN from the IRS, when I'm not
> earning the required amount that has to be
> reported...is this a good / bad idea?
If you are making over $400 a year as an IC, you are supposed to report all your income. You will receive a 1099 for any company that paid you over $600. You can risk it and not report income you receive that you didn't get a 1099 for, but the MSCs have to report and pay taxes, and the IRS can cross-reference and find out that way.
I am not sure if an audit would be the only way the IRS might find out about "under $600 non-reporters"...does anyone know?