How can I vefify my contractors SSN online for their 1099

Detroit, Michigan
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How can I vefify my contractors SSN online for their 1099

Sam Mathew
Real Estate Investor · Pembroke Pines, FL · Member since 2017 · 80 posts · 34 votes

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. 

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Denise SuppleeBusiness Member
Realtor · Willow Grove, PA · Member since 2017 · 984 posts · 643 votes
8mo

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.

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  • Denise SuppleeBusiness Member
    Realtor · Willow Grove, PA · Member since 2017 · 984 posts · 643 votes
    8mo

    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.

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    • Jules Aton
      MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
      8mo
      Quote from @Denise Supplee:

      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.

      I could be mistaken but I don’t think they need LLC to get EIN. 
      1Reply
    • Sam Mathew
      OP
      Real Estate Investor · Pembroke Pines, FL · Member since 2017 · 80 posts · 34 votes
      8mo
      Quote from @Denise Supplee:

      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.

      Thank you for the information Denise!


      1Reply
    • Denise SuppleeBusiness Member
      Realtor · Willow Grove, PA · Member since 2017 · 984 posts · 643 votes
      8mo
      Quote from @Jules Aton:
      Quote from @Denise Supplee:

      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.

      I could be mistaken but I don’t think they need LLC to get EIN. 

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

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    8mo

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

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    8mo

    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?

    0Reply
  • Sheryl Sitman
    Rental Property Investor · Philadelphia, PA · Member since 2015 · 479 posts · 362 votes
    8mo

    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!

    1Reply
  • Richard F.
    Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
    7mo

    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.

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