Latest news on 1099 Forms?

[MAJ]

EIN - No SS#

ID Theft really???? - Do you want to know how it works!? I can tell you! Unfortunately.

Someone used my SS# for 12+ YEARS! Police do NOTHING. Make a report - They do NOTHING! I made about 5 reports over the years.

Finally - 8/8/2008 - I was laid off - I received another job 20 days later - but in the mean time I went to NJ UnderEmployment where $22k showed up as wages from a restaurant and hour and a half north of me. Nope - Didn't work there!

It took a friend in the Secret Service to assist and get the Randolph NJ Police department to actually do something. That's a story in itself.

Bottom line - Mr. Diego Londono (name was not changed to protect anyone - He's an illegal alien that obviously has more rights than you and I combined) received a summons for obtaining a job in the city of Randolph with a false ID. Nothing else!!

I had creditors calling me daily for credit card accounts, store accounts, wireless accounts, and more.. It really was getting to be crazy...

He bought my SS# and card for $50 12 years ago..

Here's what's BAD! The NJ Division of Employment Services shows the wages. When the IRS and SS administration were contacted - THEY SHOW NOTHING!

When I pull my Credit profile -NOTHING!! How can that be? How can someone get credit using my SS# and another name not even close? It's insane I tell you.... but then do not have a problem calling me when he doesn't pay!

I SHRED EVERYTHING NOW. My SS# goes no where. period.

[RitaB]

Yeah!

And IRS will definitely bounce them back if the individual name isn't on the 1099-Misc with a Social Security number.

And you and I will be handling the mismatch while sole proprietor Laverne Nadene is laying in the tanning bed and/or waxing something.

[JohnH]

And IRS will definitely bounce them back if the individual name isn't on the 1099-Misc with a Social Security number.

[RitaB]

People Bustin My Chops

Also, what is up with sole proprietors being unwilling to put their individual NAME on line 1 of the W-9?

I guess cause they thought up that super-duper business name "Acme Curl Up & Dye" they wanna flaunt it.

I have had to call a dozen of these people this month.

[joanmcq]

I asked the question at one of my tax update seminars and was told that using my Sch C EIN was probably ok. So that is what I'm going to do.

[Burke]

Absolutely agree.

[veritas]

The W9 instructions says

If you are a sole proprietor and you have an EIN, you may
enter either your SSN or EIN. However, the IRS prefers that you
use your SSN.

I would only provide an EIN.

[S T]

Agree with your approach

Thanks John H, that is my approach, but on the other hand this stressed out client is trying to "nail me to the wall" stating you are my accountant you should know.

I simply said I am giving you the info as I know it right now - it is your choice TIN# or SSN# - We have "no clear - direct" guidance from the Govt-Irs, etc. We are all doing the best we can.

What I really wanted to say was "RELAX" - just go with the flow - we are tring to accomodate and do the best we can.

So in the end of the conversation, we agreed on only furnishing a W-9 form with the Individual DBA: Business and the TIN

But you just gotta know this client is going to come back and give me grief on the "first mis-match"



Sandy

[erchess]

Ss4 L 9a

How about "Other" and specify "Sch E Rental"?

[ttbtaxes]

We have advised all our rental property owners to get an EIN. They won't need it until they fill out the 1099's next year, but who wants to send out their SS# (required on the 1099) to everyone they may have dealt with last year?

How are you completing Line 9a of the SS-4 application if a husband and wife own rental property they've been reporting on Schedule E of their personal return?

9a requires that you disclose the type of entity. It's not a sole proprietor. If you check partnership the IRS will be looking for partnership tax returns in future (and perhaps prior) years.

Edit - I didn't read the full thread before posting my question to this particular post. The question still remains how on earth do you fill out Line 9a.

[JohnH]

I'd only provide the TIN# on a W-9 for a sole proprietor.
SS# is just too valuable a piece of info to be sending out to everybody you deal with.

1)The requirement is probably going to be eliminated anyhow.

2) If it isn't eliminated, IRS is going to have such a mess on their hands they either won't be able to match anything up or else they will be pestering everybody because they will have so many mistakes in their system.

[S T]

Requests for W-9 forms

Given that already, biz clients are receiving requests for W-9 forms from their clients and also their vendors,

Sole Propreitor - files Schedule C has a TIN# already

Question: Provide the W-9 form using the TIN# for the Business or the SSN# of the sole proprietor?

Taxpayer is stressing over how IRS is going to match up to his tax return and concerned about the "bounce back" notices at a future date.

Thoughts?

Thanks

Sandy

[JON]

1099s

reported to the IRS are not for tracing back to the person filing the 1099s it is to trace to the person who is getting paid. The filier of 1099s will face larger penalties and eventually may lose some deductions if they do not file 1099s.

The Government wants to show that the TAX GAP is closing, and they need the money.

[S T]

Same Thoughts

Thanks Gretel for your thoughts,

On my one Biz client for sure, that already has a EIN# for payroll and is shown on his Sched C - I am just going to fill out a W-9 form for him under his EIN# and we will see if anyone bounces it back on him, since he is a sole proprietor.

Guess I will try to apply for the Rental Clients as need be and we will see what happens.

Sandy

[Gretel]

I am sure it will keep the IRS (and us) plenty busy with correspondence for not matching ID#'s.

However, everyone using their SS# for all this reporting I call a fool with all the ID theft going on. All Schedule E filers are between a rock and a hard place, at least for now.

Maybe they just need to revise Schedule E to allow for input of EIN, same as they have on Schedule C?

I also wonder how many of the single member LLC's use the correct EIN on their Schedule C or Schedule E for that matter. You are required to apply for an EIN as single member LLC and if it happens to be a rental LLC the IRS already has to deal (or doesn't deal) with this situation.

It sure will keep all of us busy and I hope for every one of us that we charge our hourly rate and are not feeling bad for the poor people because the government is messing things up. Hey, if they need more funds to deal with paperwork they just increase fees and/or taxes.