The singer and the promoter

[non-ditzyblonde]

What is the name of your state? CA

A professional singer hires a promoter. Although the promoter is incorporated, the singer pays him by check made out to the promoter, not the corporation. The total paid in 2004 was about $6,000.

Does the singer have to issue the promoter a 1099? My understanding is that if the promoter is incorporated, then no 1099 needs to be issued. But what if the check was in the promoter's name, which is different from the corporation name?

Also: All the singer has is the name of the promoter's corporation, no EIN or anything else. The promoter has not been very forthcoming with additional information. Does the singer have to research the promoter to make sure there is a legitimate corporation?

Thank you very much.

 

[abezon]

The singer sends the promoter a form w-9. Unless the promotor provides a taxpayer ID or statement that promoter is exempt from backup withholding, the singer withholds 28% of the gross from every check. If the promoter is a corp, the corp is exempt from withholding, but has to return form w-9 anyway. Singer files a 1099-Misc for money paid to the promoter instead of the corp ("John Doe d/b/a Radical Promotions"). Promoter reports the money on the corp return.

Future checks should be made out to the corp name.

 

[non-ditzyblonde]

Thanks for the reply, Abezon. One last question: What happens if the promoter refuses to furnish a W-9? I realize that this form should have been signed before any money changed hands, but it's too late now. So I don't have a social security number or EIN, just the name of the promoter and the name of the corporation. Would I still just issue a 1099-misc to the promoter? The promoter is insisting that a 1099 does not have to be issued because he's doing business as a corporation.

Much appreciated.

 

[abezon]

You issue it. What he does with the 1099 is up to him. In the SSN block, write "Refused to Disclose".

 

[non-ditzyblonde]

Thank you very much, Abezon.