IRS imposes $50 Penalty (to you?) if your 1099-MISC/S is missing Contractor's SSN/TIN

[Account Closed]

1. apparently in all of USA, per IRS.
2. thus all the more reason to REQUIRE, per IRS, of all your contractors/subs, their corect SSN/TIN, as a condition of hire.
3. what should be used to request it, litigiously, then? a W-9 form as part of the hire package?
4. since they might fail to fill it out, on the premise they're an indie not an employee, i'd probably then go as far to write into the contract that the independent contractor cannot be paid per IRS, wihout an W-9 certifying their status as a payee.

[Steve Babiak]

OK, you require the completed and signed W9 upfront. That should do it, although the tax ID or SSN can be fictitious - but not your fault. And part of the "coercion" to complete is that you are required by IRS to backup withhold something like 30% of total to be paid if you do not get the W9; telling that to contractor should be sufficient to get the W9.

I have sent out 1099 missing tax ID in the past, many years ago. IRS sent a letter that basically said don't do that again. So I try not to :)