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if payee refuses to provide w9, what should payer do about issuing 1099 misc? Thanks.


cl2019

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I have in the past issued the 1099 forms showing REFUSED in the box for the SSN/EIN and advised the client not to use the contractor again without FIRST obtaining the W9.  It's been awhile since I've had this issue but If memory serves you won't be able to efile the 1099 form but will have to paper file.

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2 hours ago, gfizer said:

I have in the past issued the 1099 forms showing REFUSED in the box for the SSN/EIN and advised the client not to use the contractor again without FIRST obtaining the W9.  It's been awhile since I've had this issue but If memory serves you won't be able to efile the 1099 form but will have to paper file.

You can continue to use the contractor, however back withholding rules apply, which used to be 28 %.

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8 minutes ago, Randall said:

I've told clients to keep blank W9s in their truck.  Get it as soon as a new person wants work.  Tell them no W9, no work.  But still clients don't do it.  I don't know why.  Over and over again.

 

Over the years, my experience with contractors is that for the most part they are concerned about the current job they are trying finish and the next job they need to start yesterday

and not much else.

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They know what they are doing.  Same as the other topic where the entity was plainly treating an employee as a contractor.  The business people think they can dump the issue on their accountant/preparer and the cost will be less than what they saved by hiring a sketchy person/entity.  The hiring person likely did not check for business license, insurance and WC coverage.

No clean hands on either side...

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