If I gave a worker cash and want to file a 1099 without having their SS#, is it possible?

Answer 1

You need form W-9, go to www.irs.gov and you can download it.

The rules for this are tricky and the first thing you need to do is stop calling him an "employee".

Employees are withheld on and taxed, what you are suggesting is called an independent contractor.

If you paid this person less than $600 you do not have to report the earnings on a 1099 at all.

Answer 2

You can be fined for each incorrect 1099; the last time I saw the amount was a few years ago. At that time it was $50 per incorrect form.

You will also probably be notified that the worker is now subject to backup withholding.

This illustrates why firms need a completed W-9 before allowing any contractor to do work for them. If you failed to get a copy of his other applicable papers (liability insurance, workers comp, contractor's license, etc.) that could come back to haunt you much worse than the missing SSN.

Answer 3

Here's the problem. You were supposed to get the W-9 filled out before you paid them. Then when they refused to give you the SSN, you were to withhold 28-30% of the pay and send it for taxes. Then at the end of the year you were to give them either a 1099-Misc (28% withholding) or a 1042-S (30% withholding) if you decided they weren't a US citizen or resident alien.

Clearly you didn't withhold anything.

Answer 4

I don't think so. A 1099 w/o a SSN or TIN will send off major red flags with the IRS and (probably) INS.

Answer 5

Yes, if the person has a TIN or a Tax Identification Number from the IRS.

This is given to those who may not be eligible for SSN in some states, with specific visa status.

Answer 6

No, you need their SSN - and giving them cash all year and now deciding to file a 1099 is a pretty rotten thing to do. Now he is responsible for ALL taxes, etc. He can, if he wants, then file a greivance against you through the local labor board, if certain criteria is met that makes him an employee, not self-employed. Simply, did you tell him when to be at work - certain hours, etc. - then he was an employee and you MUST do the right thing.

Answer 7

sure, you may document. If he grew to become into an worker, a W-2 is needed. although, this artwork feels like self sufficient contracting, not formal employment. while he data, he ought to document all this earnings, which incorporate the earnings for which he did not acquire any tax types, on the two time desk C or time desk C-EZ. He may additionally owe self-employment tax.

Answer 8

Only if they refuse to give it to you. You have to ask. If they refuse write "Unknown" in that box and let the IRS go after them. Tell the worker your plan.