Investor · NEWTOWN, CT · Member since 2016 · 80 posts · 23 votes
I hired a carting company to provide dumpsters for a rehab project. The company never sent me a completed W9. When I again requested one the provider told me his accountant told him one is not necessary as the carting service should be deducted as material. The online research I did seems to indicate a regular trash removal service would qualify as a utility and therefore not require a 1099, but a non-utility service such as a dumpster rental would necessitate one, although it’s not entirely clear.
Am I required to provide a 1099 for a dumpster rental service?
If you paid $600 or more by check, it would be advisable to request an executed Form W-9. And...he's required by law to provide one should you request it. If, after examining the W-9, you determine that you have a 1099 filing obligation, you should 1099 him. Only include the amount paid by check, not credit card.
I don't see provision of "materials" or goods here. What property are you buying from him? None. He is providing a service. The removal of waste from your property. The rental of the dumpster is ancillary to that service.
If you paid $600 or more by check, it would be advisable to request an executed Form W-9. And...he's required by law to provide one should you request it. If, after examining the W-9, you determine that you have a 1099 filing obligation, you should 1099 him. Only include the amount paid by check, not credit card.
I don't see provision of "materials" or goods here. What property are you buying from him? None. He is providing a service. The removal of waste from your property. The rental of the dumpster is ancillary to that service.
If it is a registered corporation or you pay with a credit card no 1099 is required is the rule of thumb my cpa gave me. Try to pay everything with a credit card to minimize 1099s