How can I issue a 1099 Misc to a Contractor without their Social Security number?

[driddick]

I paid Contractor over $40,000, I had a contract with them but, no social security number was given to me.

[jbeasley2 · Accepted solution]

You can still issue a 1099-MISC without the social security number. However, to maintain compliance with IRS guidelines, you must make a formal request to the subcontractor for his identification number before the end of the year.

If you do not have the Social Security number by the time to file Forms 1099-MISC, you should leave the identification number box empty, but still submit the report to the IRS.

The IRS will send a notice stating that the number is missing.  This notice must be sent along with a backup withholding notice and W-9 form to the subcontractor. This notifies the subcontractor that he will be subject to withholding until he submits his identification number.  He is also subject to a penalty of $50 for failure to furnish the Social Security number to you.

[damian]

@TurboTaxJenB   Thanks for your answer but intuit does not give you the option to leave SSN/EIN blank.  I have 3 contractors that ignored my requests for SSN/EIN but I need to issues/file these 1099 tomorrow!!! Thanks so much!!

[bcarlis_2000]

I agree, TurboTax does not allow the SSN to be blank. What do I do? I paid extra to Upgrade TT to Business and will have to order forms from IRS and file manually.

[irrogical]

TurboTax STILL does not allow an empty EIN.  What a head ache

[accounting4]

“This notice must be sent along with a backup withholding notice and W-9 form to the subcontractor.”
So the employer is responsible for delivering the notice to the sub contractor right? What happens when sub contractors address is not known to the employer?

Thank you

[mkempton]

Keep all your documentation on file to be able to show you attempted to obtain the required info.  That doesn't change your obligations to file a 1099 and provide it to the recipient.  Going forward make sure your files are complete.  Best practices is to work with an accountant to maintain your accounts and who will watch out for the various compliance issues throughout the year.

[Critter]

If any of the contractors are incorporated you do not need to issue a 1099.  And in the future, before a stitch of work is done & before a dime is paid, have these people complete w W-9 for you.  If they will not then do not employ them. 

[nicolegutierrez1085]

Can I report 4 workers without SSN, they made less than 600

[Critter]

A 1099 is not required if they made less than $600 ... however you can still deduct the payments ... just keep excellent records in case the IRS asks.  And in the future .... NEVER hire anyone unless they agree to fill in a W-9 form first before any work is done and ALWAYS before any payment is made.  

[VolvoGirl]

You don't have to give out a 1099Misc for less than $600.  You can still enter the total Contract Labor on Schedule C line 11.

[maria617]

@jbeasley2 

You wrote: 

"If you do not have the Social Security number by the time to file Forms 1099-MISC, you should leave the identification number box empty, but still submit the report to the IRS."

How do you do this if the TurboTax 1099-MISC form generator won't allow you to leave the SSN box empty? 

"The IRS will send a notice stating that the number is missing.  This notice must be sent along with a backup withholding notice and W-9 form to the subcontractor."

What is a "back-up withholding notice" & where do you get one?

What is W-9 form and where do you get one? 

[LeonardS]

All of the replies to your post have explained how to resolve the issue of filing Form 1099-MISC when you do not have the SSN.

However, how to prevent this from happening in the future was not addressed.  You should have any contractor you are hiring fill out Form W-9, Request for Taxpayer Identification Number and Certification.

You will then have their identification number in your files for use if you have to send them a Form 1099-MISC.

[maria617]

@LeonardS 

@jbeasley2 

Actually no. Neither hers nor any of the 12 subsequent replies "explained how to resolve the issue of filing Form 1099-MISC when you do not have the SSN." In fact, there is no resolution--at least not one in TurboTax because the TT software form-generator does not support an empty SSN field. You have to find another provider who will allow you to print the form. I recommend PDFFiller (use the 30-day free trial). You can e-file the 1099-MISC right from the app for free. I found it very user-friendly.  

One thing she left out, a very important thing, is that you can be on the hook to pay the penalty for submitting an "incomplete" 1099-MISC. The penalty is not on the recipient; it's on the payee. However, if you have the paperwork to prove you made an effort to get the info from the recipient, you probably won't have to pay the penalty. But talk about a headache. And then there is the problem that you may not even have the correct address. 

Here is a far better answer to the original question:  https://ttlc.intuit.com/community/taxes/discussion/can-i-issue-a-1099-misc-without-a-social-security...

[Critter]

As mentioned earlier ... for the future ...  NEVER hire anyone unless they agree to fill in a W-9 form first before any work is done and ALWAYS before any payment is made.