How can I vefify my contractors SSN online for their 1099

Question

I am a real estate fix-n-flip and rental hold investor.  I am now needing to hire individual handyman/contractors to do work for me but annually, they now do thousands of dollar of work and I am needing to verify their SSN for their 1099 form.  Do you know how to best do this online?  I am needing to ask since one of my guys gave me a false SSN and I received an IRS notice stating that I need to update the accurate SSN for the contractor.  I am wanting to verify he is giving me the correct one if I am going to continue to have him work for me in the future.  Please help if you can.  Thanks.

Denise Supplee · Answer

Hi @Sam Mathew nice to meet you here on BP! The cleanest way is to have each contractor complete a W-9 and keep it on file. To verify the SSN or EIN, you can use the IRS TIN Matching service (free, but requires registering your business with the IRS). If someone already gave you a bad SSN, I’d require an updated W-9 before any future work and pause payments until it’s corrected. Also consider having contractors set up an LLC and use an EIN going forward to avoid SSN issues altogether.

Chris Seveney · Answer

We don't pay a vendor until we have a w9 from them

Sheryl Sitman · Answer

There’s no legit way to “look up” someone’s SSN online. You can require a signed W-9 from every contractor (non-negotiable). And Use the IRS TIN Matching tool — it checks whether the name + SSN/EIN match IRS records.

Since one guy already gave a bad SSN: • Tell him the IRS flagged itand Ask for a corrected W-9 If he won’t fix it, don’t keep paying him (or you’re supposed to withhold taxes)Good rule is No W-9 → no payment.

i run a network of investor savvy contractors/ service providers in Philadelphia and it can be a struggle with some. They are really hurting themselves the most. Good luck!

Sam Mathew · Answer

Thank you for the information Denise!

Richard F. · Answer

It should be Standard Operating Procedure to inform any contractor at your first meeting, that you require the W9 AND a current Certificate of Insurance prior to issuing any payments. Have them re-issued annually, adjusting for the expiration date of the initial COI.

Denise Supplee · Answer

Yes however, the LLC will help to avoid using their SSN on W-9s or 1099s.

Bruce Woodruff · Answer

Its true, you don't need an LLC to have an EIN number. Anyone in business can request an EIN number. In some cases you can use your SSN number instead if you're a small business.

I would not continue to use anyone that gave you a false SSN number. They've already showed you that they're a liar, why would you trust them with any work at all?

How can I vefify my contractors SSN online for their 1099

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