It only matters if the business is audited, then 1099s like mileage logs and receipts will have to be produced. The massive amount of both electronic and paper information will overwhelm theIRS. They will be complicit for awhile in not chasing down the non-filers of 1099s except for audits. Businesses will comply about as much as they do for mileage deductions.
-
"A man that holds a cat by the tail learns something he can learn no other way." - Mark Twain -
The thought of invoices having the EIN is possible. Look at how easily child care providers started putting the EIN and other relevant info on the documents they provide for our dependent care credit clients.Comment
-
I'd think this would be necessary as a purely practical matter. Probably a little box somewhere on the invoice/statement similar to the "Remit to" box we often see when a business uses a separate address for payments or lock box. Over time, an informal standard for this info would probably evolve, just so everyone would know immediately where to look. Sure would be preferable to responding to hundreds or thousands of W-9 requests at year-end, so most businesses would probably follow the lead.
In my other business, I sometimes invoice hospitals, universities, and government agencies. I have a box on my invoices which provides the W-9 info and my vendor number because I know they will contact me to say they can't process the invoice without the W-9 info. The number of those contacts has decreased considerably since I began doing this several years ago.Last edited by JohnH; 08-10-2010, 08:32 PM."The only function of economic forecasting is to make astrology look respectful" - John Kenneth GalbraithComment
-
Form 1099 withholding
How does the tax withheld from payment to an independent contractor be reported and remitted to the IRS?
Does it go to line 3 of Form 941 like the W-2 wages withholding?
If that's the case, does the payment to the independent contractor has to be added to line 2 also?Comment
-
Comment