Carl
Level 15

Get your taxes done using TurboTax

If you submit a 1099-MISC without a valid SSN on it, then you the issuer will be fined by the IRS. I don't know how much. But they'll bill you for it.

I can understand why someone would not want to give you their SSN. You understand too. But maybe the contractor isn’t aware of just how fast and easy it is for them to get an EIN (Employer Identification Number)?  Make them aware that they can go online to http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-... and it will only take them about 10 minutes to get an EIN – which they can then provide to you as required by federal law.

Assuming you have already requested this information from your contractor, and they still refuse to provide it. here is the procedure that you must follow, in order to issue the 1099-MISC without the SSN or EIN.

First, understand that you can not e-file your 1099-MISC's without the SSN or EIN. You will have to print, sign and mail it to the IRS. There is no alternative or workaround for this.

Next, print out a form W-9 (Request for Taxpayer Identification Number and Certification) from the IRS website at http://www.irs.gov/pub/irs-pdf/fw9.pdf.

Fill out the W-9 form with all the information that you know.

Make 2 additional copies of the filled out W-9 for your own records.

Mail the form to the contractor via certified mail. Don’t lose your post office receipt.

The contractor has 10 calendar days to respond. If they respond with the information you need, then you’re good to go. If they have not responded, then on the 11th day after you mailed it certified mail:

Select the “print and file” option for your 1099-MISC's forms. This will print only the documents required for filing, along with an instruction sheet that contains the address of the specific IRS processing center you will mail it to.

Include in your mailing a copy (not an original) of your proof of notification (the certified mail receipt you got at the post office), and a copy of the W-9 that you sent to the caregiver.

That’s it. While this will delay your refund (it’ll be 6-8 weeks before you get it), you’ll still get it. At this point, it’s no longer your problem – it’s the contractor's.

This action will also negate any penalties being assessed to you.