Would you prepare a 1099 in this instance?

[Bird Legs]

Client, self employed, Sched. C, rents space for business from an individual.
For 2004, I asked client to obtain the owners Soc. Sec. no. in order to issue
a 1099 for rents paid. Owner refused to furnish SSN. I issued the 1099 anyway,
without a no. and attached a note to copy A stating that owner refused to furnish the
SSN. There has been no response from IRS on this note.
Owner responded by saying that if this happened one more time that the tenant would be ordered to leave the space and remove all his furnishings. The lease would be terminated.

What would you do in this instance. Put the clients lease in jeapordy and prepare a 1099?
or just forget it?

[solomon]

Client

I have a client with 13 business rentals and never once has any of these people requested an ID from him or sent him a W-9 (believe that is the form).

[OldJack]

Its not your call. This is your clients decision. Yes, your client is supposed to issue the 1099Misc. You should not have issued the no SS# 1099Misc unless your client had said to do so.

[veritas]

What a pickle

Your client is supposed to issue a 1099 but the landlord will not provide information. So you are required to withold federal tax from the rent and pay it to the IRS. If you do life will be bad. If you don't the IRS on audit will charge a $50 fine or even worse make you pay the tax that should have been witheld.

[Jesse]

Your client is supposed to issue a 1099 but the landlord will not provide information. So you are required to withold federal tax from the rent and pay it to the IRS. If you do life will be bad. If you don't the IRS on audit will charge a $50 fine or even worse make you pay the tax that should have been witheld.

A local real estate office charges $100/month to rent "desk space", no contract, but I told my client I thought this would be considered as rent and a 1099 should be issued because greater than $600. The broker says her agents are paying "office expense" and it is not rent and refuses to give an ID #. Supposedly there are several other agents renting desk space and their accountants don't have a problem with this being office expense with no 1099's issued. Would you issue a 1099?

I explained as Veritas stated, but what bothers me is if the client receives a fine or has to pay back taxes on the money paid is she going to remember me explaining this?

We had a mason in our area several years back that several contractors did not have him sign a W-9 and he WAS subject to back up withholding and they did require money from these contractors based on what was paid to this mason.