Would you disclose your Social Security number for $150?

[ronsc]

Would you reveal your Social Security number for $150? A few days ago I was contacted by someone with a large nation-wide real estate company based in California (I am in South Carolina). She wanted to purchase a photo from me to use on their company web site. We agreed on a price of $150 and I e-mailed her a hi-res copy of the photo and faxed an invoice. Later the same day she sent me a tax form to complete and fax back to her. I don’t have any employee ID number other than my SS#, thus in order to complete the form I would have to disclose my social. Subsequently I informed the lady that IRS does not require the company to send me a 1099 unless they purchase at least $600 in services from me within the calendar year, and for a $150 sale I was not willing to disclose my SS#. Consequently the deal fell through.

This also happened once before about a year and a half ago. I don’t like to lose a sale but I don’t like divulging this type of info unless legally necessary. I am curious as to whether other PBasers have encountered similar situations and if so, how you handled it. Any responses are appreciated.

BTW, photography is not my day job. It's just a hobby but I sell some photos and that enables me to offset most of my camera/computer expenses.

[rileypm]

I suppose that it would depend on whether or not it was a legitimate offer to puchase a photo tendered from a legitimate business. A little home work should determine if it was legit or not.

I am sure that we all have, at one time or another, given our ssn away for free to companies that have asked for it and were ok with it because we trusted the company.

[jypsee]

but, you're an independent contractor and it's up to you to declare the income. Hence, they don't need your SSN.

[ronsc]

but, you're an independent contractor and it's up to you to declare the income. Hence, they don't need your SSN.

If they do not pay me more than $600 in a year they are not required to send me a 1099 (income statement for subcontractors) and they have no legal need for my SS#. $600/year or more and they are supposed to send a 1099, thus they would need my SS#. Ask a tax accountant and they will verify this.

That's why I don't want to disclose my ssn on these small sales, even when I know it's a legit company (as it was in this case). They DON'T need it.

And BTW, I declare all my photo income on my taxes. But I pay no tax on it. How? Easy, I just spend what I make from selling photos on buying more camera/computer equipment so there is no profit

[dang]

Ron wrote:

And BTW, I declare all my photo income on my taxes. But I pay no tax on it. How? Easy, I just spend what I make buying more camera/computer equipment so there is no profit

I assume things must have changed then, since my understanding was "durable goods" must be depreciated over several years, and can't be deducted at one time. You might want to ask your accountant to be sure.

[ronsc]

Ron wrote:

And BTW, I declare all my photo income on my taxes. But I pay no tax on it. How? Easy, I just spend what I make buying more camera/computer equipment so there is no profit

I assume things must have changed then, since my understanding was "durable goods" must be depreciated over several years, and can't be deducted at one time. You might want to ask your accountant to be sure.

A CPA prepares my tax return, and I am confident he knows what he is doing.

But the point of my original post was to get feedback on what people think about providing their ssn for a small sale. If someone purchases $600 or more in photos from me in a year and they ask for my SS# then I give it to them. But I won't do it for less than $600. Again I note that $600 is the IRS threshold; at or above this amount there would be a legal reason for a buyer to have my ssn. Am I being overly cautious or just prudent?

[madlights]

I can see if someone is "under contract" and the one who has you "under contract" needs this info for the IRS. But say if I purchase a single computer at Best Buy for my business...would I ask them for this kind of information? I think it speaks of sloppy business practice on the part of the company wanting to purchase your photo...'form happiness'. Part of it is the governments fault...there's so much red tape for everything that it causes people to want to cover for themselves for any eventuality..and part of it is not the governments fault. But all of this can lead to increasing compromise in regards to identity security. With me it would be a close call...I'm not sure what I would do...and probably whatever I did do...might have second thoughts on it...but still I think that company seemed sloppy in regards to process...and who knows who would have access to your SS number? It seems I remember when SS numbers weren't used for purposes of ID...way back when...think it might have even stated this either on the card or on an additional sheet when you received the card...something to the effect of "not to be used for purposes of identification" or something like that. Yeah right.

[flyingphotog]

If they do not pay me more than $600 in a year they are not required to send me a 1099 (income statement for subcontractors) and they have no legal need for my SS#. $600/year or more and they are supposed to send a 1099, thus they would need my SS#. Ask a tax accountant and they will verify this.

That's why I don't want to disclose my ssn on these small sales, even when I know it's a legit company (as it was in this case). They DON'T need it.

And BTW, I declare all my photo income on my taxes. But I pay no tax on it. How? Easy, I just spend what I make from selling photos on buying more camera/computer equipment so there is no profit

They may not have to, but they are most definately allowed to send you a 1099 for any amount. Some companies run a tighter accounting ship than others and aren't comfortable or willing to let any amount "slip through the cracks."

I've been self-employed since 1990 and I've had companies send me 1099s for only one days work which (unfortunately) was well below the $600 threshold.

As for the "not making a profit" angle when it comes to your taxes, I've not made a profit or at least not much of one (on paper ) in years but I've still had to pay at least a little each year.

In this case, you're selling something and that means some government entitiy, at some level will want a cut. Fact of life...

[halesr]

I too occasionally work as an independent contractor and have always provided my SS# to legitamate companies as part of the IC that I have to sign.--Rene

[redoak22]

My accountant told me to get a fed ID # because it was possible that clients would be asking for the number for many different reasons. Either way a fed id number is given in place of your ss# and protects you because it is the ss# for the business not you.

I set up a simple "Doing Business As" (DBA) with our local county office and I didn't have to do a search since I used my name.

[ronsc]

I appreciate the replies. The next time I visit my accountant I will discuss whether I should get a Federal Taxpayer ID Number. This seems like it may be the way to go here.

And I'll continue to follow my accountant's advice/instructions regarding my taxes - and I'll continue to keep accurate and honest records.