Why are Social Security Numbers and Tax IDs required?
Carta requires Social Security Numbers (SSNs) and Tax IDs for compliance with tax regulations, accurate ownership records, and identity verification, ensuring secure and efficient management of securities and tax-related processes. We are committed to safeguarding your information and ensuring a hassle-free experience, but if you have any questions or concerns about providing this information, please don't hesitate to reach out to our support team.
Tax Compliance and Regulatory Requirements:
Whether you're a security holder or a company administrator, accurate reporting is vital. Carta uses SSNs and Tax IDs to ensure that tax forms like Form 3921s and 83(b) elections are filed correctly and in a timely manner with the IRS.
Ownership Verification and Timely Processing:
As a transfer agent, Carta is responsible for maintaining precise ownership records. For company administrators, providing your Company Tax ID/EIN helps in the KYC process and ensures legal entity verification through IRS TIN Match. SSNs and Tax IDs also play a vital role in verifying ownership of securities and facilitate the timely processing of security holder transfer requests in accordance with regulatory standards.
Identity Protection and Fraud Prevention:
This information is used to verify the identities of security holders and companies, ensuring compliance with regulatory standards and preventing fraudulent activities. Verification is especially critical in the financial sector to maintain the integrity of transactions and protect the interests of security holders and investors.
Data Security:
At Carta, we prioritize the security of your data. Our measures include encryption at both the database and transmission levels to protect sensitive information. Our database is highly secure, encrypted, and accessible via internal connections only. SSNs and Tax IDs are protected with industry-standard security measures to safeguard your data. Additionally, individual SSNs are encrypted within the database using dedicated encryption keys. We also use HackerOne, although our program is currently private. Click here for more information about Carta’s security procedures.