Taxpayer ID Number

[ryan becker]

I live in Minnesota.

Forgive me. I have so little knowledge of tax laws and terms that my question my seem very silly.

I am filling out a form to apply for an account with a stock broker. At one point in the form it states:

CERTIFICATION OF TAXPAYER ID NUMBER (SUBSTITUTE W-9) - Check the appropriate box:
[ ] Individual/Sole Prop.
[ ] Corporation
[ ] Partnership
[ ] Other_____________
[ ] Exempt from backup withholding

____________________________________________________________
Under penalty of perjury you certify that:
(1) The number shown on this form is your correct taxpayer identification number (or you are waiting for a number to be issued to you) and
(2) You are not subject to backup withholding because (a) you are exempt from backup withholding, or (b) you have not been notified by the Internal Revenue Service (IRS) that you may become subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified you that you are no longer subject to backup withholding (does not apply to real estate transactions, mortgage interest paid, the acquisition or abandonment of secured property, contributions to an individual retirement account (IRA), and payments other than interest and dividends).
(3) You are a U.S. person (including a U.S. resident alien).

Certification Instructions -- You must cross out item (2) above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return.

Primary Signature: ____________________________
________________________________________________________________

On the bottom of the form is printed my social security number. Is my social security number supposed to be my "correct taxpayer identification number?" I am just a regular guy. I don't really understand this backup withholding deal.

 

[ecmst12]

Yes, your SS can also be your TIN and with small businesses that is pretty common.

 

[Louise Lorelle]

hi guys,

I give you some points for you,Make use of it.

1. If you are a sole proprietor and does not have any employee, then you can use your own SS number.

2. If you are a sole proprietor and want to keep employees, then you need federal EIN number. You will also need State Registration number.

3. If you are a partnership, then first register the partnership. Then you apply for the EIN for the partnership. You will also need State Registration number for the partnership.

 

[pattytx]

If you are an individual, you complete the W-9 with your SSN. This is so there is NOT a backup withholding requirement on distributions.