I wanted to add Trendsource to the list of companies for which I shop. I went on their site to register and see that they require their shoppers to get an EIN. I don't meet any criteria for which the IRS would require that I obtain an EIN. I think I understand why Trendsource wants this (for their protection) but it raises some questions and concerns:
1) Could obtaining a EIN impose other requirements on me? For example, because I have an EIN might my state or locality also require I obtain a business license or pay fees imposed on businesses?
2) If I have an EIN, will Trendsource allow me to sub out the jobs I take from them to other people?
3) Are there any other concerns which I haven't considered associated with obtaining an EIN?
If you read what they send you, you are allowed to sub out contracts, not that you could make any money doing it.
This is just another benefit of Health Care Reform, the people that they are sending out are either their employees or independent contractors. The days of them just issuing you a check are going by the wayside. Within the next couple of years in order for the companies to stay in business they will either be issuing you a 1099 or a W-2. Not to sound all conspiracy freak but the IRS with healthcare reform upgraded their data mining software and they now have so much more information than they used to. So if James Doe at 1234 Anywhere USA is reporting no income and not filing taxes and on Medicaid and when Trendsource turns in their information to the system they find James Doe at 1234 Anywhere USA actually have income, Trendsource wants to be able to document that it is not their legal problem but his, hence the EIN to verify you as an IC
You can an EIN in a few minutes for free on the official IRS website. It costs nothing. Don't fall for any sites which want to charge you money to get an EIN.
Whehter you have an EIN or not, you still use Schedule C to report revenue and to report expenses. It will not change your taxes by a single penny.
I have consulted an IRS Registered Agent, although I am certain that this was the case and have been filing that way for years. The IRS Registerd Agent used to work for the IRS as an auditor, and is now a CPA in private practice.
Up until a few weeks ago, Dspeakes (who I believe is also an IRS Registered Agent) would have responded to this thread, but she got tired of some of the things on this site and if not gone, has at least turned silent. If you search for her messages, you will find confirmation of what I said above.
Shopping Southeast Pennsylvania, Delaware above the canal, and southwestern NJ since 2008