It was nightmare when I hired this subcontractor, we had argument about $, I did not get his social, I think if I 1099 him, will he fight back again? I don't want to see him anymore.
Should I 1099 him? but I need to protect myself.
Second question, how can I get his social? He did not sign W9, need your help, thank you.
2007-12-18 03:55:22 · 5 answers · asked by Shylin C 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
Without the SS# you can't issue the 1099 MISC. My guess is that he did not have one or at least knew that you could not report his income without one. You were not wise to allow him to do work with out a completed W-9. You should make a very clear record of what you paid him, including efforts to get his SS#, in the event your return is audited.
2007-12-18 04:55:40 · answer #1 · answered by ? 6 · 0⤊ 0⤋
When to report. If the following four conditions are met, you must generally report a payment as nonemployee compensation.
1. You made the payment to someone who is not your employee;
2. You made the payment for services in the course of your trade or business (including government agencies and nonprofit organizations);
3. You made the payment to an individual, partnership, estate, or, in some cases, a corporation; and
4. You made payments to the payee of at least $600 during the year.
You were supposed to give him a W-9 when you hired him.
While you can submit the 1099 without a TIN, you start to fall under the backup withholding rules. For a US person, you are supposed to withhold 28% of payment if you didn't get a TIN; for non-US persons, you were to withhold 30% and issue a 1042-S instead. The IRS may bill you for the 28%.
Keep in mind, you can't deduct the payments you made to him unless you issue the 1099-Misc. The income tax is going to come from somebody. If it's not him, it's you.
2007-12-18 04:07:58 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Are you running a business? And did you pay him $600 or more? If so, you MUST provide a Form 1099-MISC to him with a copy to the IRS. And if you failed to get his SSN before paying him, you need to withhold 28% tax from the payments. There are stiff penalties for not getting the SSN or withholding the tax.
If this is a contractor that you hired to do work on your home or other personal business, you do NOT prepare and file a Form 1099-MISC.
2007-12-18 12:24:00 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Sorry guy unless you want to start a fight. I would just forget about him. And not having a S.S. number on a W9.. you are SOL.
2007-12-18 04:03:37 · answer #4 · answered by angel 4 · 1⤊ 0⤋
you can try sending in an 1099 to the IRS if you have his complete name and address - they MIGHT attempt to find him and get taxes owed them - nothing to lose by trying
2007-12-18 06:15:04 · answer #5 · answered by Anonymous · 0⤊ 0⤋