What proof does the I.R.S. require/accept as proof of residency?

[tranquility]

And, they've had a lot of identity theft problems from giving out their EIN to clients?

 

[davew128]

That's why I'd explain it and give it to them and move on or just ignore the letter. I've got better things to do than convince others what the law is.

I didn't try and convince them of anything. I told them to read the instructions and have a nice day. I've got better things to do than placate the sensibilities of the ignorant.

 

[tranquility]

Those ignorant people have another name--CLIENTS.

 

[davew128]

Those ignorant people have another name--CLIENTS.

Yes and your point is? Client wanted to do something in violation of the law. I refused to assist. I pointed out they were incorrect in what they were doing, which by the way is required of me under Circular 230 as relates to CLIENTS. If they are too ignorant or too lazy to look up the instructions for the less than complex forms they are preparing, they shouldn't be doing it in the first place. By the way, the instructions for 1099-MISC stating not to issue the form to corporations is buried....on page ONE.

 

[tranquility]

My point is, my obtuse friend, is one shouldn't be a jerk to clients. Advise on the law. If they insist, give them the number. No harm, no foul. Save the violation of the law rubbish for things which make a difference. It's clear from your attitude the contest I mentioned earlier is your goal.

 

[davew128]

What you call being a jerk, I call tough love. Giving the number as you suggest simply enables their behavior. Oh, and they didn't call asking for the number the following year. Apparently my ploy worked.

 

[tranquility]

It might be good to remember, for future statutory interpretation puropses, that "not required" does *not* equal illegal or a violation of the law.

No harm, no foul, sugar/vinegar.

 

[LdiJ]

And, they've had a lot of identity theft problems from giving out their EIN to clients?

Well, its not the same as personal identity theft, but when someone racks up a bunch of bills using your EIN number and avoiding sales tax...and both the state and the vendor come after you, its a problem. And that has happened to a couple of my clients...and once it was the employee of one of a client's vendors, and in the other instance it was a mom and pop shop vendor who was struggling who did it.

 

[mcwjjm]

Getting back on track

Interesting discussion, but I do have a follow up question. If I should claim them as dependants and when our returns are flagged at what point would the CPA that processed my return become involved? Should I turn the IRS letters over to him and let him process their request [with my assistence]?

 

[tranquility]

Any letter from the IRS should be handled by your tax professional--even if it costs you money.