1099 Quest

Forum|Forum|2 years ago
November 7, 2023
2 replies
7 views

I have a vendor requesting that we amend his 2022 1099; listing his Business Entity /FEIN vs his Legal Name and Social. This vendor completed his W9 last year using his Name on line 1 and Business Name on line 2 and using his social security number as the taxpayer identification number.

My question is are we obligated to correct his 1099 and resend it to this vendor as well as sending a corrected copy to the IRS? The company issued the 1099 correctly based off what they vendor provided .

1099

Anonymous_

Level 15

They are supposed to send you an updated W-9 if their TIN changes.

Carl

Level 11

If you are required to issue a 1099-NEC (or 1099-MISC), then you do so based on the information the vendor provided you on the W-9. If they did not send you an updated W-9 prior to the end of the tax year, you are not obligated to issued a corrected one. But you must certainly can if you want, "after" the vendor provides you an updated W-9.
If the vendor is a sole proprietorship or single member LLC, it won't really matter tax-wise for the vendor weather you do or not. However, if they're filing as a corporation then it "may" or "may not" matter.
Personally, I'd issue a corrected 1099 once they have provided me an updated W-9. Now for this one specific situation, if any penalties are assessed on me by the IRS for this, I'd let the vendor know I'm passing that cost on to them.