An Accounting Question

**Mr.M** · 07-15-2010 06:50 PM

Good day everyone,

If a business plans to purchase products from a wholesaler, is it necessary that the wholesaler asks for the
purchaser's business tax id for invoicing? Has anyone had this experience? I appreciate your help.

Mr.M

**Financeguy74** · 07-15-2010 11:37 PM

It is very common for a wholesaler to request the Tax ID from it's purchasers. Chances are they going to order a Dun & Bradstreet report and basic credit profile of your business. Whether you are on COD or Terms, they will want to know who they are getting involved with.

Speaking of Tax IDs. In a couple years, you're going to need theirs. Starting in 2012, small businesses will be required to send a 1099 form to every business they spend more than $600 at in a tax year. It was hidden in the health care reform bill even though it has nothing to do with health care.

Hope this helps.