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maria-e-gomez12
Returning Member

Contractor didn’t have a TIN last year but has been issued an ITIN this year. She filed taxes estimating her 1099 last year. Do I still need to issue a 1099?

The contractors amount was included on my total amount posted for 1099s issued when preparing my business income tax.  Would I need to amend my taxes from last year to issue a 1099 to her.
1 Reply
Opus 17
Level 15

Contractor didn’t have a TIN last year but has been issued an ITIN this year. She filed taxes estimating her 1099 last year. Do I still need to issue a 1099?

You are better off ignoring it.

 

If you are in business, and you pay a contractor more than $600, you are required to issue a 1099-MISC, even if the person does not have a tax ID number.  If the person does not have a tax ID number, you are required to withhold 30% of the payment as mandatory backup withholding and send it to the IRS.  If the person files their tax return, they get credit for the withholding.

 

Going back to fix this problem would call the IRS attention to the fact that you did not make the mandatory withholding, and could subject you to penalties.

 

I assume you already deducted the expense as a business expense, so there's nothing to amend for your tax return, it would just be issuing an out of date 1099, which could also in turn lead to your contractor getting a letter, asking if she already reported the income or if this was new income. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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