Posts tagged 1099

First of all, don’t panic. If you sent out a Form W-9 requesting a taxpayer ID so you could issue a 1099 but haven’t received one back, send it again. Each time you send out a Form W-9 keep a log so you can prove to the IRS that you tried to obtain a tax ID number from an individual or business.

Should you issue a 1099 without a tax ID number? Yes! According to a conversation I had with IRS representative 0705420, you still have to issue the 1099. What will happen is that the IRS, in the spring or fall, will send a notice stating that your information return is incomplete. If you have obtained the Form W-9 from the person by the time you receive the notice, you do not have to do anything. However, if you receive a penalty, you can try to get the penalty waived under Regulation 301.6724-1. As long as you have the evidence to show the efforts you made to obtain the tax ID number, you should be fine.

You can also file for a 30-day extension to file the information returns by completing Form 8809.

For more information, visit the IRS website at www.irs.gov. You can also read Publication 1281 which talks about bakup withholding if you do not receive a Form W-9.