Replies

1. 
   DaveHeinlein | Feb 01, 2004 01:42am | #1

   If I pay a sub more than $600, I have to 1099'em. I get them from all the contractors I work for.

2. 
   Schelling | Feb 01, 2004 02:17am | #2

   If we supply the materials and the sub the labor, we send him a 1099. If they provide their own materials, equipment and labor, we do not. This is probably not the proper way to do it but it makes sense to us. Anything else seems rather pointless. We have received one 1099 in over twenty years.

3. 
   geob21 | Feb 01, 2004 04:28am | #3

   If unincorporated and paid over $600.00 they get a 1099.

   If you don't you are liable for the tax.

   I'd also worry about the workers comp if your questioning a 1099. If the sub has employees or anyone he subs the work to your responsible for all workers comp without a cert.

1. 
   gdavis62 | Feb 01, 2004 06:33am | #4

   This is a guy I fired, and who wouldn't give me an SS# if I had him at gunpoint.  I checked with the IRS regs, and I can 1099 him and leave the field blank for the number.  They will crossmatch to get the records tied.

1. 
   JeffBuck | Feb 01, 2004 06:52am | #6

   That bit about the blank number is good to know.

   JeffBuck Construction   Pittsburgh,PA

        Artistry in Carpentry                

2. 
   Piffin | Feb 01, 2004 05:19pm | #7

   The blank number can bite either way.

   For instance, If he has a name like Mike Smith ( thousands of those guys, almost as many as John Brown) the IRS worker might assign the report to the wrong one and when he finishes fighting it for a couple years...

   Also this example is from W2 instead of 1099 but sme idea - I hired a sixteen year old girl in the store 25 year ago. Shje was an American citizen but her family was raising her in BC out in the boonies 80 miles from town so she didn't have an American SS#. We did the W forms "Applied for" as recommended. Then she moved again and was out of contact. For three or four yyears after that, I was getting info request report forms from the IRS wanting to know what the SS# was for that person.

   The best thing to do in future is never write someone a check until they show a number. That's my conclusion anyway..

   Welcome to the

   Taunton University of Knowledge

   FHB Campus at Breaktime.

   where

   Excellence is its own reward!

1. 
   marv | Feb 01, 2004 08:06pm | #8

   If you file a 1099 without a ss# or with an incorrect ss#, you are subject to a $50 fine.  If you don't send one at all, you are subject to the same $50 fine.

   The IRS says that if the sub refuses to give you his ss#, you are to withhold 30% and forward it to the IRS.

   When your insurance company audits you to find out how much payroll you paid out during the year, they will include any people you have sent 1099s to unless you have certificates of insurance from them.

   You get out of life what you put into it......minus taxes.

   Marv

   Edited 2/1/2004 12:07:46 PM ET by Marv

2. 
   xMikeSmith | Feb 01, 2004 06:45am | #5

   same here... if they are unincorporated  and more than $600.. they get a 1099..

    some othe ones who claim to be incorporated get 'em alsoMike Smith   Rhode Island : Design / Build / Repair / Restore