1099 contractor won't complete W9 form

1099 contractor won't complete W9 form

Residential Real Estate Broker · Campbell, CA · Member since 2013 · 38 posts · 29 votes

Hi BP,

In 2014 I hired a recommended contractor to do a quick job for me at the end of a project, but later learned that he was unlicensed (yes, I know I should have known that upfront AND got a W9 filled out before work started).  After he did the work, I flipped the house, so the full amount of the work should be a write-off to my company.  I won't bore anybody with more details on how I let this happen to me, just to say that I find myself in a predicament now.  I need to send him a W9 form to fill out, but the gentleman who recommended him tells me he probably won't fill it out because he only does work "under the table".  At the time he completed work, I wrote him a $2300 check to his personal name (evidently he doesn't actually have a business). I would like to know what (if any) recourse I have against this guy.  In my tax bracket, it represents over $800 loss if I can't write off the expense.  Of course, I don't want to spend $1000's in legal expenses to go after him....so can I just send him a 1099, even though I don't have a signed W9 from him?  What are my options if he won't respond to my  request to complete the W9 form?  Thank you!

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Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
11y
Originally posted by @Mark Gagner:

Hi BP,

In 2014 I hired a recommended contractor to do a quick job for me at the end of a project, but later learned that he was unlicensed (yes, I know I should have known that upfront AND got a W9 filled out before work started).  After he did the work, I flipped the house, so the full amount of the work should be a write-off to my company.  I won't bore anybody with more details on how I let this happen to me, just to say that I find myself in a predicament now.  I need to send him a W9 form to fill out, but the gentleman who recommended him tells me he probably won't fill it out because he only does work "under the table".  At the time he completed work, I wrote him a $2300 check to his personal name (evidently he doesn't actually have a business). I would like to know what (if any) recourse I have against this guy.  In my tax bracket, it represents over $800 loss if I can't write off the expense.  Of course, I don't want to spend $1000's in legal expenses to go after him....so can I just send him a 1099, even though I don't have a signed W9 from him?  What are my options if he won't respond to my  request to complete the W9 form?  Thank you!

 Write out the 1099 and put refused for his SSN.

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  • Ridgewood, NY · Member since 2017 · 16 posts · 3 votes
    7y

    @Eamonn McElroy how can a person protect themselves aside from a W9?

  • Real Estate Broker · Northeast PA · Member since 2017 · 2k+ posts · 3k+ votes
    7y

    You might consider a skip-trace program or service.  We subscribe to a service and can find out when you last went to the barber/beauty parlor.  But of course we only would use it for legitimate business purposes. 

  • Accountant · Atlanta, GA · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Elizabeth R.

    What are you trying to protect yourself from?

  • Ridgewood, NY · Member since 2017 · 16 posts · 3 votes
    7y

    I would like to make sure I have all the necessary information to provide to the IRS when the time comes. 

  • Accountant · Atlanta, GA · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Elizabeth R.

    Requesting and obtaining a signed W-9 from all independent contractors, and issuing 1099-MISCs if required is the extent of your obligation as it relates to federal income taxes.

    You have no obligation to be detective/auditor/investigator on behalf of the IRS, and the contractor has no obligation to play along.

  • Ridgewood, NY · Member since 2017 · 16 posts · 3 votes
    7y

    Thank you Eammon McElroy!

  • Member since 2019 · 1 post · 0 votes
    7y

    There is the other side also. You are asked to do a job on the side, you don’t have the overhead a business would have and are able on a 3000 or 4000 dollar job save someone 800 to a 10000 dollars. At the end of the job the accountant tells owner they need a w9, I will give you w9 but you don’t get to get $800 back when I reduced the price of the job by $800 to a $1000 don’t pretend you don’t know your having someone do a side job for a reduced price.

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