It seems like a major identity-theft liability to distribute your EIN or SSN to everybody who's bought $600 worth of goods or services. If you're doing consulting work, you should have incorporated and therefore have an EIN (which I suspect is more secure than SSN). But if not, you're going to be giving your SSN out to lots of people.
Based on the average net-profit of identity theft, would it be worthwhile for scammers to "invest" $600 to buy a product from somebody who they suspect hasn't incorporated, just to get their SSN?
You don't need to incorporate to get an EIN. I got one for my sole proprietor LLC. I'm not sure about other states, but in Oregon it was a single page LLC application and a $55 fee. (It's now $100, I believe.) After getting the LLC registered with the state, I sent in the EIN form to the IRS, and a few weeks later an IRS guy called me to confirm a few of the line items. That was it.
I've created a PDF of my W-9 and have it available upon customer request. I strongly oppose the 1099-INT reporting requirement, but unless it changes there are a few things that will make it a little less painful.
(BTW, despite the stereotypes, the guy from the IRS was really friendly and helpful.)
Same here. I've had both mail and phone contact with them on a few different occasions, related to contract paperwork technicalities over the years, and they were always pretty nice, clear, reasonable, honestly trying to be helpful, etc. Granted, I try to be exactly those same things to them, so perhaps that helps.
Based on the average net-profit of identity theft, would it be worthwhile for scammers to "invest" $600 to buy a product from somebody who they suspect hasn't incorporated, just to get their SSN?