Amazon Tax ID for Stealth Accounts

emunah · #1 10-09-2011

I have searched the forum, but am still uncertain the best way to provide Amazon with a Tax ID when setting up a stealth acct.

Ques:
1) Does everyone, irrespective of sales revenue or amount of sales, need to provide a Tax ID to Amazon by Dec. 26, 2011?

2) Do we now need to provide Amazon with a real name, since they will be potentially sending the name along with the Tax ID to the IRS?

3) In order to avoid sending Amazon my suspended acct. name, should I be able to set up a stealth acctount if I use a business EIN and DBA? Is there any other way?

Thank you for your help.

cardfelon · #2 10-09-2011

1. Yes and if you don't the account will be suspended until the information is provided.

2. The name you provide has to match the SSN or EIN number you submit to Amazon

3. Yes you can set up a business and get a EIN from the IRS. Then set up your Amazon account in the name of the business.

emunah · #3 10-09-2011

I assume that each time I get suspended, I have to set up a brand new EIN / DBA in order to avoid detection by Amazon.

However, this can cause my tax reporting to be tricky. For example, the IRS website states that "you should have only one EIN for the same business entity."

Does anyone have knowledge in this area?

KingRay · #4 10-09-2011

The best thing to tell you is that stealth is not really all that good for using the EIN. That is there for when you are ready to be legit with your info.

If you want to do stealth you should go another way. split up sales like others say on here. There is too much to the EIN for people that are not completely familiar with it. Plus this year is too late. you will get hammered with taxes on sales you made all year. read up and learn how to use it for next year.

yellow0102 · #5 10-09-2011

Listen to KR ^^^ on the EIN stuff! He know's what he is talking about

emunah · #6 10-10-2011

Thanks for all your help.

I assume you mean that as long as I do not have more than 50 transactions in any one of my accts., Amazon will not require that I give them my EIN.

I found the following on Amazon's website:
Beginning in 2011, sellers who exceed 50 transactions in a calendar year, regardless of sales volume, will be required by Amazon to provide taxpayer identification information to Amazon. If the required information is not provided to Amazon by December 26, 2011, your Amazon selling privileges will be suspended until you provide the information.