The IRS plans to allow sole proprietors to provide either their Social Security Number or their Employer Identification Number on its W-9 forms, incorporating an American Bankers Association recommendation for how to improve tax reporting.
Last year, the IRS released for review its updated draft W-9 form, which is used to report taxpayer identification numbers. ABA offered possible improvements, including giving sole proprietors the option of using either their SSN or EIN.
The IRS recently released a revised draft W-9 form incorporating the change. The agency is seeking public comment on the new draft.
