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1099-Misc returned due to wrong address on W-9

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    1099-Misc returned due to wrong address on W-9

    How many U.S. mail attempts am I required to make if the 1099-Misc is returned due to invalid address and no forwarding address yellow sticker is on the returned envelope?

    If returned due to invalid address with a forwarding address yellow sticker but expired, am I required to forward to the forwarding address which could also be invalid?

    #2
    Originally posted by AZ-Tax View Post
    How many U.S. mail attempts am I required to make if the 1099-Misc is returned due to invalid address and no forwarding address yellow sticker is on the returned envelope?

    If returned due to invalid address with a forwarding address yellow sticker but expired, am I required to forward to the forwarding address which could also be invalid?
    Your asking for an opinion so here is mine.

    1. Keep the envelope that was returned (with the yellow sticker).
    2. Mail the form (or another copy) to the yellow sticker address, and request from the post office a certificate of mailing.
    3. Put the certificate (or receipt) for mailing in your file, along with the original (first envelope), and move on. If the second envelope comes back undeliverable, put that in the file and move on. That way, when the payee of the 1099 starts to complain to others on this message board, you will have documented what you did and it will not be your problem.
    4. Bill the client for your costs and time (it was not your problem afterall).
    5. Having gone through this several times, I have advised my business clients who issue 1099's to confirm addreesses on the W-9 by mailng an envelope with some sort of enclosure when they get the completed W-9 back from the payee. (Of course, usually it is me doing the mailing). If the envelope comes back, I advise confronting the worker or payee and if not satisfied with an address (from state ID or DL or whatever), tell the worker we are withholding 28% as backup withholding.
    6. Other will surely say that you do not need to do anything more (and I used to believe that to be true and it probably is correct from a strickly statutory/regulation standpoint). My experience has revealed that taking and documenting the original and subsequent steps stops a lot of arguments.
    7. You can scan all these things as well and shred the paper.
    Friends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.

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