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.
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.
@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!!
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.
TurboTax STILL does not allow an empty EIN. What a head ache
“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
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.
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.
Can I report 4 workers without SSN, they made less than 600
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.
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.
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?
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.
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
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-number-in-quick-employer-forms/00/63850
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.
Try PDFfiller (link below). You can access a 1099-MISC form and you don't need to enter EIN or SSN (but do enter 000-00-0000) in the EIN field. When you are done, the app will also automatically submit it to the IRS.
The app is free for the first 30 days. I did three 1099s (without EINs) and submitted them to the IRS. When I was done, I unsubscribed to the app.
https://www.pdffiller.com/en/us-federal-tax-forms-irs/information-returns/1099-form/1099-misc-form
Okay - so my situation is we have an independent contractor who is no longer a contractor with my business.
When preparing for1099 issuance we discovered that we had failed to send her a W-9 in her original package. I have emailed her, my assistant has called her multiple times and has not responded to any of our attempts to reach her. Our calls are immediately sent to voice mail, so it is obvious she has no intention of giving us her tax ID number.
I have gone ahead and issued her the 1099 with the TAX ID number blank and submitted it with my 1096.
My question is how can I further press her for her SSN when she no longer works with us? I understand from this thread that the IRS will follow up with notice to me citing this blank 1099.
Appreciate any assistance! TIA
You don't. You let the IRS do it.
Do the following: Send her a W-9 (link below) by registered mail, or Priority (so you get a tracking number).
Now, when the IRS contacts you and says, Hey, you didn't enter the SSN#, you can write back and say, I tried but she refused to provide this and here is my proof (attach a copy of the postage, the letter saying please complete the W-9, attach any emails, and that sort of thing--you may even want to hire a process server if the amount is over $5K) and send those receipts off to the IRS. They will take it from there. Trust me, there is no where to hide anymore. The good thing about that is, it's getting harder to screw over honest people.
Nicole,
If they made less than $600, you do not need to report their wages to the IRS. You do include the wages you paid to them on your business expenses as "Independent Contractor", but the IRS will not take the time to make sure they reported their wages as income on their side (their 1040s).
This thread doesn't address the situation when you have a lazy EMPLOYER - someone paid you - you filed a w9 - but you need their EIN from a 1099 and what if they don't issue one to you in January like they are supposed to? Turbo Tax won't allow you to leave it blank. Solution 1 (Which I don't want to do) print and file by mail. Is there another way? www.crediblock.com
You should be keeping your own records. Just enter it as Other self employment income or as Cash or General income. You don't need to get a 1099NEC or 1099K. Even if you did you can enter all your income as Cash. Only the total goes to schedule C.
How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653
The answer to this question is found in IRS publication 1281 starting at page 5. You will receive notice from the IRS regarding an incomplete 1099. From there, you must submit a Form to the Payee. If you are continuing to pay the payee, and the payee does not provide a TIN, then above $600.00 annually, you will have to start withholding tax from the payee. Basically, it's a big headache if you have a regular 1099 payee who is earning above $600.00 annually. Hope this helps.
I found a solution. Private investigators can find peoples social security numbers for a fee. Here is a video of how to get someone's ssn to complete a 1099-MISC https://youtu.be/wsbhAUtxU2A
If I had siding installed on my personal home do I still issue a 1099 to the contractors ?? The amount was $ 30,000. No business use of property.