EIN/SSN Needed to Open Class Reunion Account

Question:

Is an EIN required to open an account such as a class reunion account, or is it ok to use the SSN of the signer?

Answer:

For CIP compliance, you may indeed use the SSN of the individual who is opening the account. That's only true when the organization is not a legal entity.

However, for IRS compliance, you need an EIN for information reporting. The account does not belong to the individual and it is simply wrong to use his SSN to report any interest paid.

First published on BankersOnline.com 2/21/11