Yesterday I was opening an account on Fotolia. I gave them all the information they asked for but I refused to give them my SSN, so the account was not approved. Is anyone else reluctant to give out their social security number to these agencies?

Tailspin, I have to agree it's a bite the bullet moment. Just think what can happen if their security is sloppy. When I first got set up with them they didn't require it but as my sale built up then they asked for it. This is the point I desided that if they're going to tax me like a business I would keep really good records and treat it like a business. I think it's the way most photo sites will go when government does an audit and wants to know if they really paid out any money.

Very true. I haven't yet tried it, but I am starting an LLC business and getting a Tax ID number (EIN) instead of using my SS#. I hope the agencies will let me change over and report everything under that number (starting Jan 1, 2008).

Rule #1: Seperate business and personal.


_________________
Multiple Agency Image Search Engine

You should really try and get it out of your SS#. Some sites don't have a field that works with an EIN, but you can call and have them put that into their records. Run it like a business and you'll save yourself a world of trouble later.

PS: Get a bank account in a business name. This really helps to keep things legit and well tracked.

Very true. When I joined them earlier this year I didn't provide my SSN and was set up as a buyer but still permitted to upload and sell photos. I guess when it gets time for a payout then I'll need to provide the info. There is another site in the US that I know of that not only requires your SSN but also a copy of you drivers license!

ggrreeggoorryy wrote:

Tailspin, I have to agree it's a bite the bullet moment. Just think what can happen if their security is sloppy. When I first got set up with them they didn't require it but as my sale built up then they asked for it. This is the point I desided that if they're going to tax me like a business I would keep really good records and treat it like a business. I think it's the way most photo sites will go when government does an audit and wants to know if they really paid out any money.

Yes, I know that 123RF does this. It seemed like another site recently required it as well.


_________________
Looking for the best stock image agencies? Checkout:
Top MicroStock Sites: Rankings by graphic designers (buyers)
Top MicroStock Agencies: Ranked by photographers (sellers)

In acordance with Internal Revenue Code Section 6103-ii, all sites securing your SS# are required to encript it so that it cannot be viewed by anyone who should gain accesss to you Personal Profile information.

In accordance with IRC Section 61A, all income has to be accounted for and must be reported unless otherwise excluded by provisions of the code.

IRS must prove unreported income, and the taxpayer must prove all deductions if audited. My advice is to keep good track of any income- especially if not accounted for by a Form 1099 or W-2.

Tip - If you are using PayPal, just save a printed copy of the money you transfer from the MS account to PayPal. Keep them in an envelop. Also keeep track of any travel expense while on a shoot. You can deduct meals and any overnight stays plus mileage. For overnight stays, you must travel at least 50 miles. Mileage can be kept track of by keeping a log on a clip which you keep handy in your car. You will need to record the date, business location (i.e. From Anytown to Somewhere and return.), Reason - "Photo shoot", Mileage Beginning, Mileage Ending, and mileage driven (Ending Mileage - Beginning mileage = miles driven). At the end of the year you multiply total mileage driven by $.35.

If you do not feel you are earning enough for a business, state that you have a hobby. You will fill out a Schedule-C and attach it to Form 1040. If you have a hobby, you do not carry a "Loss" forward to be deducted from other income. If you have a business, the Schedule-C loss will reduce other taxable income.

the above can be done using your SS#. Usually folks don't bother securing an EIN (Employer's Identification Number) unless they have employees and are witholding SS taxes. Also as a business, you are subject to additional SS tax on the business income generated by photography.

Just a thought that popped into my head.
Harry

Wow! That is a well thought out thought. Thanks for the information.


_________________
Looking for the best stock image agencies? Checkout:
Top MicroStock Sites: Rankings by graphic designers (buyers)
Top MicroStock Agencies: Ranked by photographers (sellers)

I too refused to give them my social security #.
As far as I'm aware of, the only scenario in which they could require a social security # is if I were a direct employee. Other than that it is my responsibilty to file my papaerwork correctly.

I think they could be cooking the books.

Secondly: They cannot ask you to provide a social security # over an insecure connection.
So...they have no right to deny access to the site as a submitter.

I was going to speak to a lawyer and see if was worth persuing legal action, but one little guy and a cheap lawyer is not going to do much.

However......If we all got togther.......

The Microstock site is required by law to issue a Form -1099 for anyone who performs a service or who earns a commisssion through submitting inventory or services. To do this they must have access to your SS # as well as your name and mailing address. The Form W-2 is issued to employes hired to work directly under the business' supervision and in their environment/place of business.

You are correct that the site should be secure, and the SS# must be encripted with the utmost of caution! If they refuse to secure your personal information, you should get a lawyer. as they would be in violation of 6103 ii of the Internal Revenue Code. The penalty is quite severe in these instances and they are subject to law suits.

I am in the proces of alerting the staff at the various sites where I submit, because I noticed that on one site, the SS# show up in my Profile! Not good if someone hacks into the personal info.

They were notified two weeks ago, and I haven't been advised of a change yet. I will give them two more weeks to comply; then I will contact IRS via the Problem Resolution Officer which will invoke and immediate investigation.

Good luck, and be careful.