Re: Personal experiences? Was Re: VISA / 1ST BANK

["Doctor Spook" <dr.spook () gmail com>]

On 10/21/06, Chris Walsh <cwalsh () cwalsh org> wrote:
> I don't think that strictly speaking this is part of the "know your
> customer" stuff, although it may be as implemented in the typical
> case, but in order for interest to be reported on a 1099, you have to
> supply a taxpayer ID number (which handily is the SSN for individuals
> in most cases).
>
>
> On Oct 21, 2006, at 4:46 AM, ziplock wrote:
>
> > I worked in the banking industry for a while, and as I recall, fed regs
> > require you to give the (U.S.) bank your SSN to open any type account.

You may use a "taxpayer identification" number instead, but those are
becoming rarer for individuals as time passes. Many small business
owners do not even realize that there is that option, in these days. I
do not believe that the Patriot Act had anything to do with this
requirement, since a social security number (or taxpayer ID) has
required for an account circa 1970 or so.

Here's a current link for the rules:

http://www.fdic.gov/news/news/financial/2005/fil9105a.html

Here's another for the enactment of the rules:

http://www.irs.gov/irm/part4/ch26s05.html

There are multiple documents that may be used to acquire a taxpayer
ID, including the much maligned Mexican voting ID (a very easy
document to forge). I usually recommend to small businesses that they
apply for an ID, rather than using the SSN of the owner, when setting
up business accounts, so that death or retirement (or ID theft) cannot
disrupt the normal day to day business.

-- 
We should not be building surveillance technology into standards.
Law enforcement was not supposed to be easy.
Where it is easy, it's called a police state.  -- Jeff Schiller
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