1099MISC with subs refusing to give social security #

[Burke]

You might also inform the recipient that there is a $50 penalty for failure to furnish a TIN, and that he/she should expect correspondence from IRS concerning this.

Except that he/she won't get any, in my experience. But the backup witholding notification does do wonders in obtaining the SSN/EIN's. Although that is only if you are paying them in the future. Bet the client won't make that mistake again. It's something I harp on over and over, and it just doesn't seem to sink in with some people.

[Bees Knees]

Page 6 of the general instructions for Form 1099 says:

If the recipient does not provide a TIN, leave the box for
the recipient’s TIN blank on the Form 1097, 1098, 1099,
3921, 3922, 5498, or W-2G. Only one recipient TIN can
be entered on the form. Backup withholding may apply

It then refers you to the backup withholding instructions that basically say to start backup withholding.

It is interesting to note that nowhere in the instructions does it say you have to secure a W-9 prior to making your first payment to the recipient. It merely says if the recipient fails to furnish you a W-9 with the TIN, you have to start backup withholding.

So in your case, I would simply issue the 1099-MISC to the recipient and IRS with the TIN box blank. I would also attach a note to each stating the recipient refuses to return a W-9 with a valid TIN. You might also inform the recipient that there is a $50 penalty for failure to furnish a TIN, and that he/she should expect correspondence from IRS concerning this.

[Lion]

Have client phone contractor and explain, including $ penalties. If no response, have client mail the W-9 with return receipt requested. If still no response, then mail contractor Form 1099-MISC with "refused" for his tax ID number. If still no response, file Forms 1099-MISC with IRS. Warn your client of HIS penalties for not getting the W-9 before making payments.

[kpangelinan]

Client needs to file 1099MISC on some independent contractors who are refusing to give their social security numbers and fill out a W9. I've always recommended clients get a W9 signed prior to any payments, but this is of course after the fact.

Is there a process the client takes to filing these with the IRS (1099's and 1096). Like sending a letter or is there a form to fill out?

Thanks,