I am in the process of flipping my first house. I was a fool and had a miscommunication with my partner and we didn't get one subcontractor's tax info on a W-9 before we payed him. I payed him the $3,000 we owed him with a personal check. Now, as I am sending out 1099's to the contractors he has not responded to my request with his tax id or soc sec number. Therefore, I can not fill out a 1099 for him completely. I have his name and address.
What are my options here? Obviously, I would like to write off the $3,000 expense. The due date to send out 1099's is today. Do I continue to try to track him down for his info and pay the 30 day late fee if I'm able to do that? My only proof of payment is the cancelled check and bill he gave me. Thank you very much for any advice...and I know never again will I not have a W-9 completed before payment!
Believe it or not you can just list his company's name or his name and address on your tax filing. I've done this several times when a sub won't reply to a W-9. But always refer to your tax pro.
If the sub is an LLC or Corp, some state Corporation Divisions list the entity tax ID no. on the website. I also believe the "recipient refused to provide tax ID no." suffices, but have never had to do this.
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