Can a 1099-MISC Be Sent Without a Social Security Number?
1099-MISC is a form used for reporting a variety of payments, most significantly those by a business to an independent contractor. The form serves two purposes: The copy filed with the IRS helps it make sure the recipient of the payment pays any relevant taxes; the copy sent to the recipient helps him complete his tax return accurately.
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Requirements
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A 1099-MISC must usually be filed by the payer whenever payments to the recipient total at least $600 during a year. This only applies to business-related rather than personal payments, though "business-related" does include nonprofit organizations. Generally, payments to corporations are not covered by 1099-MISC.
Identification Numbers
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Form 1099-MISC includes a box marked "Recipient's identification number." This should be the Taxpayer Identification Number for individuals, though an Employer Identification Number is acceptable for sole proprietorships and limited-liability partnerships. In most cases, an individual's TIN is his Social Security number. Resident aliens will instead have an Individual Taxpayer Identification Number issued by the IRS.
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Administration
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Businesses making payments covered by 1099-MISC can send IRS form W-9 to the recipients, requesting details of the person's name, address and TIN. Although sending W-9 is not mandatory, it is good practice. By keeping the completed W-9 on file, the business can show it acted in good faith if there is any later confusion over the recipient's identity or details.
Consequences
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If a business is unable to obtain the TIN of a payment recipient, it can leave the identification number blank on the 1099-MISC. However, the business is then required to withhold 28 percent on most of the payments covered by the form and submit this money to the IRS. This is known as backup withholding.
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