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NotAnAccountantHere
Level 2

I am a Sole Proprietor with an EIN sending 1099's to subs, why is my SSN showing up on the forms being sent?!!

As a sole-proprietor sending 1099's to contractors I feel extremely uncomfortable sending these forms with MY SSN on them.   Quickbooks when creating 1099's via QBO e-file service I was never presented with an option to file 1099's with EIN.  It was only when I was downloading and reviewing the forms did I realize that now I am sharing my SSN with Subcontractors.   How does Intuit's team not see the need to protect one's identity?     The IRS published instructions clearly state under section J the following: 

 

"Sole proprietors. You must show the individual's name on the first name line; on the second name line, you may enter the “doing business as (DBA)” name. You may not enter only the DBA name. For the TIN, enter either the individual's SSN or the EIN of the business (sole proprietorship). The IRS prefers that you enter the SSN"

 

QBO 1099 filing should CLEARLY state to the person filing that their SSN will be used ! 

3 Comments
AileneA
QuickBooks Team

I am a Sole Proprietor with an EIN sending 1099's to subs, why is my SSN showing up on the forms being sent?!!

Hi there, NotAnAccountantHere. 

 

In QuickBooks, it's always our top priority to ensure the security data of our customers. The reason why your SSN showing up in the form, the IRS would need the full social to find and correctly match the person to make sure you comply with the necessary details of the tax agencies. That said, truncating an SSN is not possible.  

 

To learn more about how 1099 works in QuickBooks Online, feel free to check out these articles:  

 

 

I'll be around if you have other questions or concerns. Just don't hesitate to comment below. Take care and have a great day ahead.

NotAnAccountantHere
Level 2

I am a Sole Proprietor with an EIN sending 1099's to subs, why is my SSN showing up on the forms being sent?!!

AileneA,

Thank you for your reply.  I further reviewed the Instructions for filing and realized that I was looking in the wrong section.  Section K actually has the instructions for filers like myself.   With that said, my concern and frustration remain.   Intuit's 1099 e-file service does not give the filer the option to chose,  nor inform them that it will be using the SSN, even if the QBO user has entered a valid SSN and EIN.   It is my understanding that Sole Proprietors are allowed to use their EIN for the specific purpose of not distributing their SSN.   Make sense?   This should be an option for the user, especially in these days with ID theft being a real threat.  

 

Thanks!

AileneA
QuickBooks Team

I am a Sole Proprietor with an EIN sending 1099's to subs, why is my SSN showing up on the forms being sent?!!

I do understand where you coming from, NotAnAccountantHere.  

 

I know the importance of having this kind of feature to guarantee the security of our customer data. I'll make sure to tap this to our developer's team. This way, they might be given a chance to be included in the next product updates.   

 

In the meantime, you can visit the QuickBooks Blog site, from time to time to see new updates. From there, you can see the future developments and the latest news about QuickBooks and what our Product Care Team is working on.    

 

In the event that you should have another questions about this, or need anything else, you can find me here. Wishing you and your business continued success!

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