A 1099-MISC form is a form that records payments of $600 or more made that year to a contractor. One of the elements that need to be present on a 1099-MISC form is the taxpayer identification number. The taxpayer identification number (TIN) is a number used to identify a person for tax purposes. This TIN is used by the IRS to make sure that your taxes have been filed correctly. The TIN is more than just one number, however; the TIN is a bunch of information including the employee’s SSN and other identifiers that will be used when filling out a 1099-MISC form. If your contractor does not provide you with their TIN, there are a few things you can do.

 

Have the Contractor Fill Out a W-9 Form

 

The W-9 form is used to request the contractor’s TIN and other personal information. Once the W-9 form is returned to the company or employer, the employer can take the contractor’s information from the W-9 form to complete the 1099-MISC. If you have a contractor who has not completed the TIN section of the 1099-MISC form, you can request that he or she fill out a W-9 first so that you can finish the 1099-MISC form on your own.

 

Avoid Fines and Penalties from the IRS

 

Leaving the TIN section blank on a 1099-MISC form is cause for a fine. If one of your contractors does not provide you with a TIN or SSN, then you will have two options to choose from. You can either wait for the forms to come back completed by the contractor with all the necessary information on it or you can file the 1099-MISC form with the TIN section left blank, but turned in on time. If you decide to file the form late, you will get a fine, but if you file the form on time with the TIN section blank, the IRS will contact you and you can show them that it was done for a reasonable cause.

 

Keep Records

When working with any employee, it is important to keep all of their records in case you need to finish reporting any forms on your own. It is also important to keep records of you requesting that the contractor complete the 1099-MISC form or provide you with their TIN. These records will need to be shared with the IRS after they contact you so that you are not subject to a fine for not completing the forms. As long as you have reasonable cause for leaving the TIN section blank on the 1099-MISC form and proof that you did in fact request the information from the contractor, you will not be penalized.

 

Work with WageFiling to make sure the forms for all of your employees are complete and turned in on time. You can even refer back to old W-9 forms and 1099-MISC forms from your WageFiling account in case you run into trouble with one of your contractors. When working with WageFiling, make sure you save all documents for your own records so that you do not need to go through the same thing next year.