1099-nec for contractors that did not provice EIN or SS with W9 request

[deean]

I am using the Turbo Tax Home and Business 2023.  I have rental properties and use contractors for maintenance and repairs of over $600.  I am required to issue 1099-nec to the contractors.  I have sent each W9 tax forms and followed up with phone calls but some of the contractors have not provided EIN or SS numbers.  I understand from IRS and the internet that I should still issue 1099-nec and for the SS or EIN I should leave blank or write "refused".  The Turbo Tax does not allow me to issue 1099-nec without a valid SS or EIN.  I feel this should be changes to allow for blank or write "refused".  The software can be changes to provide a pop up window that asks, "do you really want to leave SS and EIN black?" and maybe provide the reasons that this is valid.  As a result of this shortcoming in the software I need to purchase paper 1099-nec for $20 and fill out the forms.  

[KrisD15]

The IRS requires you to have a W-9 on file for each subcontractor and kept on file for four years after last payment. 

The W-9 should be requested from the vendor before a contract is agreed upon. 

[deean]

Hi

Thanks for the reply. There is no requirement by the IRS to obtain a w9 before subcontract work is performed from my understanding. The w9 should be sent to subcontractors and if the subcontractor before a 1099-nec is filed. For rental properties a 1099 needs to be filled for work over $600 and is not required for work under $600. If the subcontractor fails to provide a reply to a w9 they are subject to a small fine from the irs and if they fail to report the 1099-nec information on their taxes they are subject to a more major fine. Even without all the w9 information (ie ss or Ein) the rental property owner is required to file a 1099-nec. Back to the point of the post - the turbo tax does not support 1099-nec filing without nec or ss and I think it should since this is a valid filing for the 1099-nec form. 

[DianeW777]

When filing electronically it's necessary to have those identifying numbers for the 1099-NECs to flow the IRS systems.  Keep in mind that all companies that file this way must meet IRS specifications.  The good news is that you can print an mail them to the IRS exactly as you stated with 'Refused' printed in that spot.  

Options: 

1. Use the software to prepare the 1099s, then print them for mailing.  Use a false number, then write over it after whiteout and write 'Refused' before mailing,
2. Prepare a .pdf on your computer without the number, then print and mail, again write 'Refused' in the identifying number field for each contractor who refused to supply the completed W-9 form. 
   • Form 1099-NEC 
   • Form 1096

@deean 

[Hanselndracula4]

That link in your reply to the 1099-NEC says on page 1 that we cannot use a printed copy of the RED federal form and that we will get fined if we print it, use it and send it in.  So I would think that we also cannot use a printed form from Quick Employer either as you suggested (by using a made up SSN or EIN then whiting it out on the printed copy).  I haven't checked with the IRS yet but I guess the $20 form that the other person mentioned is the official red form that must be used to mail in if we don't have the contractor's SSN or EIN to do an electronic filing.  

[RobertB4444]

If you don't have their social security number just write 'refused' in the area for that.

Here's the 1099-NEC.

You'll need to mail it in.

@Hanselndracula4