Giving SSN to agent. Normal?

Musin' · Nov 4, 2006

Hi. Longtime lurker coming out of hiding to ask a question. After a year of query letters and angst, I have finally landed an agent for my novel. The agent is well respected, has lots of good mentions here and elsewhere and is recommended on P&E. So I'm not concerned about this agent's reputation or respectability.

However, I now need to sign the agency contract which also asks for my SSN for tax purposes. I am no tax expert so I'm wondering if this is standard for agents? I thought that the agent took her money from any checks cut by the publisher (in the event of a sale) and then passed the rest along to me, with each of us responsible for taking taxes out of our share. If that's the case, why would she need my SSN? Is there something I'm missing here? I'm sure it's fine, but in this day and age I'm very leery of giving out info. unless it's absolutely necessary. Any help appreciated.

ORION · Nov 4, 2006

Yes I had to do the same thing - it's like the info you give when you get a job. If you form an LLC you also have to give your FEIN.
The assistant that collected my information answered all my questions really well. You need to feel comfortable about asking these type of questions of your agent (or their assistant)
JMHO

Popeyesays · Nov 4, 2006

The agent will receive all royalties on your behalf, deduct their comission and forward the rest to you. They HAVE to have your SSN to do that legally.

Regards,
Scott

Irysangel · Nov 4, 2006

Musin' said:
However, I now need to sign the agency contract which also asks for my SSN for tax purposes. I am no tax expert so I'm wondering if this is standard for agents? I thought that the agent took her money from any checks cut by the publisher (in the event of a sale) and then passed the rest along to me, with each of us responsible for taking taxes out of our share. If that's the case, why would she need my SSN? Is there something I'm missing here? I'm sure it's fine, but in this day and age I'm very leery of giving out info. unless it's absolutely necessary. Any help appreciated.

The same thing was on my contract. It probably also states in your contract that the agency will issue you a 1099 at the end of the year if any money has been made. *That* is what they need your 1099 for.

Speaking from the standpoint of someone that issues W-2s and 1099s every year, it is much easier to get information up front and compile in a database than trying to run down the information in January, when it's due.

If you feel uncomfortable with giving out such information, apply for a FEIN with the IRS -- this is perfectly acceptable to file with as well.

Deleted member 42 · Nov 4, 2006

Yep; it's normal and legit. The need your social security # for tax purpose, both for forms that they send you, if you make a sale, (advances or royalties are both taxed) and because they also report directly to the IRS.

Giving SSN to agent. Normal?

Musin'

ORION

Sailed away years ago

Popeyesays

Now departed. Rest in peace, Scott, from all of us

Irysangel

She of Many Names

Deleted member 42