If they are not incorporated and the work was $600 or more. It's what I did for my 2 contractors that operate under an LLC and as a person doing business.
If they are not incorporated and the work was $600 or more. It's what I did for my 2 contractors that operate under an LLC and as a person doing business.
As a side-note: I used to use TurboTax to create, print, and electronically file 1099's with the IRS - HOWEVER, TurboTax has now decided we need to buy their $200 version in order to maintain this functionality. Did a little research, and found efile4biz.com .... was super cheap to use, and they even mailed hard copies out to my sub-contractors (no need for me to print and mail), then automatically e-filed with the IRS. Good Luck.
Being that the deadline already passed and the work was for a rental, should I just skip it? Also, what happens if I do work and the contractor doesnt want to give me their tax info, or if they operate as a sole prop and wont give their ssn? Thanks
Being that the deadline already passed and the work was for a rental, should I just skip it? Also, what happens if I do work and the contractor doesnt want to give me their tax info, or if they operate as a sole prop and wont give their ssn? Thanks
Moving forward, require a completed W-9 before you ever issue the first payment.
@Bob Stein It is fairly standard and you can download a W9 right from the IRS website.
I have anyone who qualifies for a 1099 complete a W9 before I issue them their first payment - even if the job is less than $600 just in case I have them do additional work later on. Getting the paperwork out of the way on Day 1 is much easier than scrambling around chasing people this time of year.
Is that standard practice, that anyone doing work over $600 fills out a w9?
Yes, it should be standard practice, but it is ignored by most. Then they have the exact problem you described: no way to obtain tax IDs after the work was paid for. It should be a condition for getting paid. Better yet, a condition for being hired, i.e. before starting work.
Without SSNs you have no way of filing 1099s. Since they were rentals, you won't be breaking the law by not filing. Going forward, I recommend that you start collecting W9s and filing 1099s.