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Level 2
January 24, 2022

Can I file 1099-NEC without TIN

  • January 24, 2022
  • 3 replies
  • 21 views

HI, 

I have a client who needs to file 1099-NEC for some of his contractors but one of them will not provide my client with EIN or SSN. And he also blocked his phone so my client can't reach him...

Can I file 1099-NEC without TIN for that contractor ? I am using Employer's Quick Forms to file 1099s for my clients...

Thanks

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    3 replies

    IRonMaN
    Level 15
    January 24, 2022

    I doubt if Quick Forms will process the 1099 without a taxpayer number.

    Slava Ukraini!
    joshuabarksatlcs
    Level 9
    January 24, 2022

    Can I file 1099-NEC without TIN for that contractor? 

    One advice I give to serious business clients is that they should ALWAYS have the vendor's W-9 on file before making the first payments. 

    When a client (usually sheepishly) told me a vendor refused to provide the info, here's the remedy:

    1.  Send a W-9, along with a draft 1099 that has the vendor's last known info with "Refused to provide" clearly written on the draft.  On the cover letter, state "Please return the signed W9 with the info.  If we don't get  it by **/**/20**, the enclosed draft 1099 will be finalized and mailed to the IRS.  A copy will be furnished to you by law.

    2.  Either expect a signed W-9, or brace for a nasty phone call.  Sometimes both.

    3.  If the W-9 is NOT received, consider filing the 1099 (which has to be paper-filed and no more Quick Form business.) 

    My experience with my clients over the years was that they would invariably get the signed W-9, sometimes with a nasty phone call.

     

    For non-serious business clients, we just drink bourbon and say/sing cheers to the health of IRS.  

     

    I come here for kudos and IRonMaN's jokes.
    IRonMaN
    Level 15
    January 25, 2022

    So, is that a "no"?

    Slava Ukraini!
    joshuabarksatlcs
    Level 9
    January 25, 2022

    ask @sjrcpa 

    A long time ago, I lost my ability to give short answers.  

     

    I come here for kudos and IRonMaN's jokes.
    Level 15
    January 25, 2022

    Be aware that your client could be subject to a penalty for not filing a correct 1099.  It is also hypothetically possible your client could be subject to paying the 24% Backup Withholding for that payment.

    Make sure your client knows that he needs to receive the W-9 from the contractor BEFORE he makes any payments.  If he does not receive the W-9, he is required to withhold 24% as Backup Withholding.

    sjrcpa
    Level 15
    January 25, 2022

    I go with No.

    The more I know the more I don’t know.