1099 When No W-9

[anteater]

What is the name of your state? Texas

A business employs an independent contractor to do some work. The knuckleheads running the business pay the contractor (> $600) without first obtaining a W-9. When now asked for a W-9, the contractor has a good laugh.

What are the business' obligations in issuing a 1099? Contractor name and address are available, but can a 1099 be issued without a TIN?

Thanks for any help.

 

[ShyCat]

Yes, you simply issue a 1099 to the contractor without a TIN. The IRS will match it to his return.

According to the "2004 General Instructions for Forms 1098, 1099, 5498, and W-2G", page GEN-8...

If the recipient does not provide a TIN, leave the box for the recipient's TIN blank on the Form 1098, 1099, 5498 or W-2G. See Backup Withholding on page GEN-3.

 

[anteater]

Thanks, ShyCat.

 

[dietrichschmitz]

When to W-9

Washington State

I am in a similar boat: A lot of 1099 independent contractors. I use their soc #s for their 1099s. When am I required to have these guys fill out a W-9? Always?

Thanks!

 

[abezon]

Any time you might pay them over $600 during the year. Just give them the form & if they don't provide the EIN/SSN, you withhold 30% of the gross payment as "backup withholding" & send it to the IRS. They list the withholding as a payment on their tax return.

 

[johnathandoe]

What about $600?

CALIFORNIA.

I had one contractor who I paid $600 for services, and then added $200 to the check for his hotel expense--so I cut a check for $800 total. Do I still need to issue him a 1099?

Thanks.

 

[abezon]

yes


A