@kdawg6 wrote:
it's not for services
it's a rebate payment , for which I have to fill out a W9
the utility company is using a 3rd party rebate processor to pay out rebates.
I don't believe this will be a proper use of an EIN. However, I can't find a regulation or penalty, and you seem to take the view that it is better to ask forgiveness than to ask permission. I'm not sure any more needs to be said.
Separately, you haven't discussed what kind of rebate this will be. If this is a one-time rebate (such as, the utility pays you to install a more efficient furnace) then the money is not taxable, even if they issue a 1099-MISC. Instead, the rebate reduces your cost basis, and reduces the adjustment you can take for capital gains when you sell. There are two ways of dealing with this situation when you file your return.
- Leave the 1099 off your return. File by mail instead of e-filing. Attach a copy of the 1099 and a letter of explanation as to why this is not taxable.
- Add the 1099, then add another item of "other income" with a negative amount to cancel out the income from the 1099. You can e-file, but the IRS may send a letter asking for the reason for the adjustment.
If this is an ongoing payment related to solar energy (RECs, or residential energy credits), the money is taxable "other income." And you don't reduce the cost basis of the solar installation by the amount of the payments.
