Taxpayer asks:
Can you please tell me what I should do if the independent contractor has not provided me with his TIN or EIN number? Should I send in the 1099 without a number?
Taxgirl says:
This is probably one of those answers that I’ll get flak for but I’m giving you my opinion anyway…
The official rules say to send it on without the TIN or EIN. This is, of course, after you’ve made a good faith effort to get the information.
I usually write “REFUSED” in the space where the TIN or EIN would go. I do this so that the IRS is on notice that I didn’t forget – I just couldn’t get the number. “REFUSED” feels loaded and has the potential to tick folks off. But I look at it this way: the rules are what they are. And if I ask and you don’t tell me, the burden should shift to you, not me. So there you go.
It is worth noting that there may be penalties to the payor for not submitting a proper TIN or EIN. There are also penalties for not providing your own TIN or EIN to a payor. So it’s important to make an effort to fill out the proper paperwork.
Before you go: be sure to read my disclaimer. Remember, I’m a lawyer and we love disclaimers.
If you have a question, here’s how to Ask The Taxgirl.
No flak from me. I agree with your opinion to enter ‘refused’ or some other explanation in the EIN field, especially since there is risk of penalty to the payor. Great post!
Thanks!