My husbands brother worked for him last year as a subcontractor earning 23,000, we are now trying to issue a 1099 but he refuses to give us his socail security number . He won't even return our calls. What can we do?
2007-12-26 09:39:54 · 6 answers · asked by GI 5 in Business & Finance ➔ Taxes ➔ United States
There was a falling out..long story but in no way was he cheated out of money.
2007-12-26 09:47:44 · update #1
By failing to get the W-9 prior to paying him you have backed yourself into a potentially expensive corner. If the recipient refuses to give you their SSN you are required by law to withhold tax from any payments at 28% and pay that to the IRS. The IRS will be looking for that 28% from you if you file a From 1099 without his SSN. There may be additional penalties on top of that as well. The real kick in the nads for your husband is now his brother gets credit for the 28% tax that should have been withheld but was not.
A couple of other folks have given you some good ideas, such as sending the W-9 via certified mail and highlighting the penalty section. I would also suggest your husband retain an attorney to contact the brother and demand either his SSN or a return of the 28% that he's going to have to pay over to the IRS. You should also document your efforts to get the SSN.
2007-12-26 12:08:55 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Which is why you get this information up front!
You can still issue the 1099-Misc (and you need to in order to deduct if your husband's schedule C). The problem is, without the number your husband was supposed to withhold 28% for taxes and send them in every month.
Get a blank W-9. Fill it out except for the signature and SSN (highlight those lines). Send it to him certified/return receipt requested. Highlight the part that says he has a $50 penalty for not giving it to you.
You as payer could be subject to your own penalties for failure to withhold.
2007-12-26 09:46:28 · answer #2 · answered by Anonymous · 2⤊ 0⤋
About all you can do is report his name and address and pay that you paid him to the IRS and let them come after him. He's just trying to get out of paying his taxes on that money. His problem, not yours.
2007-12-26 09:45:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You were supposed to have the W-9 before you paid him the first time. But that said, if you didn't - call the IRS and ask them how to proceed.
2007-12-26 09:45:28 · answer #4 · answered by Judy 7 · 2⤊ 0⤋
I don't know. There must be a reason he won't give it to yall. Did you cheat him of some pay, or steal from him? Sounds like he is pretty bitter with you guys. Try talking to an attorney.
2007-12-26 09:43:13 · answer #5 · answered by kevin h 5 · 0⤊ 2⤋
CAll your mother in law. You should have had him complete something before he began working for you though. Do you mean this year or last year, btw?
2007-12-26 09:44:46 · answer #6 · answered by Momof4:nomore! 4 · 0⤊ 1⤋