1099-Misc Contractor paid directly by lender from held back insurance proceeds

[Gretel]

Client is required to pass on all proceeds paid by insurance for loss claim to lender. Lender pays contractor directly. Is the lender required to issue a 1099 form or my client?

[ATSMAN]

Lender may issue the required tax documentation.

[Gretel]

I am pretty sure lender doesn't since getting the contractor's W-9 was not part of the process. I would like to find out who is the responsible party.

[ATSMAN]

I am pretty sure lender doesn't since getting the contractor's W-9 was not part of the process. I would like to find out who is the responsible party.

If the payer is the lender then they should get a W9 before they cut the check!

What do you think the contractor is going to say when his check is NOT in the mail because a W9 is waiting to be signed?

[Gretel]

If the payer is the lender then they should get a W9 before they cut the check!

What do you think the contractor is going to say when his check is NOT in the mail because a W9 is waiting to be signed?

Still not my question. It's the lender's responsibility to get their paperwork in order not my client's or the contractor's? Do you give out a W-9 when not asked?