Club TIN and someone's SSN conflict?
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Club TIN and someone's SSN conflict? Has any other club been told that their TIN is also someone’s SSN? Here is the background behind the question. We have a TIN that we received in 2004 when the club started. It was used to open the first brokerage account and a bank account. Then a successor bank account in 2006. It was been used on each 1065 information return and Part 1 A of each K-1. There hasn't been a problem before. I persuaded the Club to switch to a brokerage that includes a bank account to simplify bookkeeping based on discussions that have appeared here. The move to the new, well-regarded brokerage has not been smooth. The latest bump is that our TIN does not appear on the opening documents . I called their 24/7 customer support line. I was told that our TIN was also someone’s SSN. The brokerage has solved the problem by using a 9 character number beginning with "G". We should not be concerned. Our TIN will appear on the 1099. The explanation they volunteered is this: "It's just one of those things that happens". If we needed more explanation, we should consider asking the Social Security Administration. On the web, this brokerage states that it certifies all tax IDs submitted on an application. The collective view of the club is that "it happens" is not satisfactory. It's more likely that that it is a brokerage error or maybe identify thief. Everyone is the club says that it never occurred to them to use our TIN as a personal SSN so how could this happen. I thought I'd ask the question here before proceeding further. Ron Pautz, Secretary/Treasurer Hi Ron,
I'm in an RV club, which is totally social, but when I took over the treasury I performed an audit on everything and discovered the same thing. The EIN was actually someone's social security number. I never knew they both had 9 numbers.
I had contacted the Internal Revenue Service to verify the number belonged to the club because it didn't start with the traditional EIN numbers for Minnesota. That's how I discovered the problem. They wouldn't share any more with me that it was a deceased person's social security number. It had been used for over 10 years on 1099s, and bank accounts, etc. In our case, the club had actually established an EIN number when it originally started. But it still took me 4 months, working with the IRS, to get the whole mess straightened out.
I'm no legal or tax expert, but I can tell you this has nothing to do with the SS Administration. This is an IRS issue. Do you have a copy of your original EIN (TIN) form that was completed when the club was started? If not, I recommend that you start by contacting the IRS and asking for a copy. That will tell you if that number was actually used to start the club, or if someone used their own SS number to open the first bank account. You may find, just like I did, that there really is an actual EIN number out there not being used by your club. Then you can work with the IRS to straighten things out.
Good luck to you, and please keep us informed along the way. I'm sure this will not ge the last time we hear of this happening. It would be nice to have in the archives how this was resolved for you.
Sincerely,
Lynn Ostrem
Crow River Investment Club
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