Why Your Customers Have The Need To Ask For Your Ohio Tax ID Application
It may sound obligatory for a business to be questioned by customers about their federal tax identification number. Like for an Ohio clientele, they may need to ask about the business’s Ohio Tax ID application for information. Note that one has to safeguard his or her personal details to be protected at all times, especially that identity theft is rampant nowadays. However, this really may not be a real reason for concern as it is a typical request of doing business with these customers. Having said that, it is often crucial to reason out why they need such request.
What is a Business Tax ID Number?
For those who don’t really know, the Federal Employer ID number or FEIN is composed of nine digits. When you go for Ohio Tax ID application, IRS will designate it to a business entity operating in the United States for reasons as identification and for employer-employee reporting. It is equal in importance as the individual’s SS number. However, FEIN is considered not a sensitive information and should be distributed by businesses. Using the FEIN will likely make it impossible for doing financial or identity theft. Many banks and other financial institutions disclose this information to customers upon their request. Also remember that FEIN may be referred to as their Tax ID Number or TIN.
Must I Reveal My Business Tax ID Number?
A question may arise if a business needs to reveal his or her Ohio Tax ID application number to a customer. The response to this is NO as it is a public information, which can be acquired through searching databases like FEINSearch.com. It is very important to understand why this customer needs the business’s FEIN. If the business offers some services, the receiving business may need its FEIN for issuance of the Form 1099-MISC, when payments to the business go beyond $600. The so-called FORM is required when the payment made to an independent contractor exceeds $600. It may not be necessary if the customer uses it for personal reasons or when the payment is made to a corporation. That’s why it is essential to understand why your customer needs your FEIN.