turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

ugundew
Returning Member

EIN for Individual

If I get EIN for personal use of purchases, as certain companies will only sell it to the EIN established companies, do I need to file Federal and MA tax return for EIN established stating no income and no expenses? Since all expenses for the personal use and are not taxable.

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

EIN for Individual

No, possession of an EIN does not mean you have to file a return. You do not have a business and you have no income.

Carl
Level 15

EIN for Individual

Just an FYI, as my experience with this is limited and probably not all inclusive. First, understand that sales tax has nothing to do with income tax.

Generally when a supplier will only sell to an entity with an EIN, it's because that supplier is a licensed wholesaler who is not required to charge or collect sales tax. They usually have some type of documentation from the state or other lower level taxing authority allowing them to do this. They usually sell at a wholesale price to other retail businesses that will resell the product at a higher retail price.  Then the retail business is required to collect a sales tax and pay that tax to the state or other taxing authority on a periodic basis - be it monthly or quarterly. 

If you are purchasing products at a wholesale price for personal use and not paying your state or lower level taxing authority, then you "may" be in violation of some law or ordinance. This also puts the wholesaler at risk too.  This may be something you want to check out to confirm beyond any doubt that you're not in violation of any laws or ordinances. Otherwise, if/when you're caught, the excuse of "I didn't know" won't fly.  The fines/penalties can be (and usually are) very high.

 

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question