Tax rules?

[sengsational]

I am also surprised that they haven't been caught by the IRS. However it is not just a couple people it is possibly a majority of the hundreds(or even thousands) of people who do this for a living.

How closely do they validate your identity? I'm sure they ask for a driver's license or something, but I can see those who are more interested in the money than in following the rules could offer a fake one. I'm sure they also ask for an SSN, but, again, like employers, if they want to hire a person, the validation might be cursory or completely lacking.

 

[pb4uski]

I'm guessing that each participant is required to complete a W-9 Form, which officially provides the payor with the recipient's TIN. The W-9 is signed under penalties of of purjury.

Under penalties of perjury, I certify that:
1. The number shown on this form is my correct taxpayer identification number...

The payor isn't required to validate the TIN with the IRS so if a recipient provided a bogus TIN there is no way for the payor to know... but the IRS could chose to go after the recipient for not only tax compliance but also falsifying the W-9.

But people are stoopid, so I suppose that some do it.

 

[aaronc879]

I'm guessing that each participant is required to complete a W-9 Form, which officially provides the payor with the recipient's TIN. The W-9 is signed under penalties of of purjury.



The payor isn't required to validate the TIN with the IRS so if a recipient provided a bogus TIN there is no way for the payor to know... but the IRS could chose to go after the recipient for not only tax compliance but also falsifying the W-9.

But people are stoopid, so I suppose that some do it.

Correct, you have to fill out a W-9 at the start of every study. They also say the income is reported to the IRS and we will receive a 1099. There is no further info given on how to file taxes even if pressed. You do also have to show a valid ID. You also have to read part of the informed consent out loud to verify you can read it and understand what it says.