Can a psychotherapist use an EIN in place of her social security number?

June 18, 2014 by Dave Du Val, EA
Man on couch talking to Psychotherapist

Hey Dave,

My wife has her own business as a psychotherapist and is the only person involved, i.e., she has no employees. She frequently has to submit claims to insurers that require either an EIN number or her social security number. Because of the number of these claims she has to submit, some of which end up in the hands of clients, can she get an EIN to use for security purposes in place of her Social Security number? Also, would it require a separate tax return, or just her customary Schedule C with both SS and EIN numbers on the form?

Sincerely,

Tad

 

Tad,

You can apply online for an EIN number which could be used in place of the Social Security number in many instances. Your wife would still be able to file her Schedule C, as the EIN ties back to her Social Security number at the IRS. And you are certainly smart to be concerned about SSNs and other personal identifiable information.

Here’s the link to begin the application process.

Deductibly Yours,

Dave

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Dave Du Val, EA

Dave Du Val, EA
Chief Compliance Officer for TRI Holdco

 
Dave Du Val, EA, is Chief Compliance Officer for TRI Holdco. Inc., the parent company of TaxAudit, and Centenal Tax Group. A nationally recognized speaker and educator, Dave is well known for his high energy and dynamic presentation style. He is a frequent and popular guest speaker for the California Society of Tax Consultants, the California Society of Enrolled Agents and the National Association of Tax Professionals. Dave frequently contributes tax tips and information to news publications, including US News and World Report, USA Today, and CPA Practice Advisor. Dave is an Enrolled Agent who has prepared thousands of returns during his career and has trained and mentored hundreds of tax professionals. He is a member of the National Association of Tax Professionals, the National Association of Enrolled Agents and the California Society of Enrolled Agents. Dave also holds a Master of Arts in Education and has been educating people since 1972. 
 

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