This is an interesting situation since a teacher is not a traditional vendor selling a product or service but teaching a class.  We’ll analyze in further detail below but we would strongly advise the teacher to understand the reason for the request by their customer.

What is a Business Tax ID Number?
Let’s explain what the nine digit Federal Employer Identification Number or “FEIN” is for those that don’t already know.  The FEIN is assigned by the IRS to business entities operating in the United States for the purposes of identification & for employer/employee reporting.  It would be the equivalent of an individual’s social security number.  But, the FEIN is not considered sensitive information and is commonly distributed by businesses.  Also, keep in mind that the FEIN can be referred to as the Tax Identification Number or “TIN”.

Should I Share?
Back to the question, should a teacher be concerned with giving their FEIN to a customer?  Probably not, since it is generally public information that can be obtained by many search databases like FEINSearch.com.  But, it is still important to understand why the customer wants the FEIN.  Since the teacher is selling a service, the recipient business organization would need a FEIN to issue what is called a FORM 1099-MISC when payments to the teacher are in excess of $600.  But, if the recipient is an individual attending the class for personal use, then a FORM 1099-MISC would NOT be necessary. This is why it is important for you to understand your customer’s intention in obtaining the FEIN.

We hope this clears up any worries or confusion.

More Tax Questions?
If so, our Tax Experts are happy to help answer all of your tax questions.

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