Use of EIN on Schedule E

nycdpj
nycdpj Member Posts: 2 Newcomer
in Filing my taxes

Hi, I have a rental property and need to issue 1099 for contractors. I am a sole-proprietor and use an EIN to issue 1099s. I don't see a way to enter the EIN while filling out the Schedule E for my rental property. I understand that as I am a sole-prop, this EIN is a disregarded entity. I use the EIN also for my bank account and credit cards. So, is there any way for IRS to tie the EIN to my SSN?

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Answers

  • JohnV
    JohnV FreeTaxUSA Agent Posts: 35 image
    edited April 8

    Hello nycdpj,

    Yes, there is a way for the IRS to tie the EIN to your SSN. When you filled out Form SS-4 to apply for an EIN, you have to enter the responsible party name, SSN, and signature. It is from here that the IRS tracks who is the responsible party for that EIN. You can see the IRS process here:

    https://www.irs.gov/businesses/employer-identification-number

    Who is a responsible party
    On the EIN application, you must name the person in charge of the entity and its assets, called the responsible party. The application must generally include the responsible party’s:

    Name
    Social Security, individual taxpayer ID, or employer identification number (for entities)
    Signature
    Nominees are not authorized to apply for an EIN. A nominee who applies for an EIN puts the entity’s information and privacy at risk.

  • nycdpj
    nycdpj Member Posts: 2 Newcomer

    Thanks John for your response. My understanding is - I am OK to use my EIN for issuing any 1099s to contractors, use it to sign up for credit cards or bank accounts (that may issue 1099-INT), but on my tax returns, I don't use my EIN anywhere as long as I use a Schedule E to file.

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