Undelivered 1099

[Selkirk]

Clients are MFJ and have "day" jobs with W-2's. They own a sole prop service business that sets up equipment and hires disk jockys for karaoke shows. They 1099 the DJ's. One DJ refused to give them their SSN. If they have to eat the money it will put them over $1000 for taxes owed and probably have a penalty for not sending in estimated taxes. How should we procede? Thanks in advance.

[Bird Legs]

1099 No S S #

I would issue one without a number and inform the DJ that he has worked his last time for
them. Technically, you should withheld income tax from his pay, for refusing to furnish the number.
Go ahead and deduct it as an expense anyway.