W-9 Form and My Lawn Maintenance Guy

W-9 Form and My Lawn Maintenance Guy

Decatur, GA · Member since 2015 · 419 posts · 52 votes

Hello all,

I have a bit of a sticky situation with the guy that does the yardwork (mowing mainly) on my house. 

He does a good job.  He's reasonably priced.  He is flexible as far as scheduling and receiving payment.  He is friendly and trustworthy.  

I still owe him for the last two times he has done work.  

I have recently past (if you count the payments owed) the $600 threshold for this year to where I am expected to get him to complete a W-9 form and later submit a 1099.  I read in the Nolo book on taxes for landlords that if I don't take care of the W-9 paperwork I would be responsible for the taxes owed by him or something like that.  

I have mentioned to him twice that I need him to complete a W-9 and have sent the form to him through DocuSign, but he hasn't responded (he has responded otherwise).  

I want to pay him for his work and want him to continue taking care of the lawn, but at the same time hesitate to send the checks before he completes the W-9.  

What do you suspect his reasons are for wanting to avoid doing the tax paperwork?  I do realize that having to pay taxes on the $600 may actually amount to the amount or more of what he is paid for a single time of mowing the lawn, but I'm happy to continue offering him business going forward.   

Am I being too much of a stickler to require a W-9 form from a lawn service guy?  Do I need to find someone else (I really don't want to)?

0Reply
52 views

Most Popular Reply

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
9y

I try to follow tax rules and regs absolutely to the letter, but I would find a way to keep my personal yard guy under the $600 limit if close.

I heard of a guy recently that had gutters installed on their home, which has a rental attached. The bill was $682.  He wrote a check for $582 to the gutter co, then a $100 check to his supplier directly. Or maybe it was a gift card to the gas station he uses.  Maybe it was to  the dump where he disposes of waste. The details were a little sketchy, but the idea was intriguing.

Again, I follow the rules, but perhaps there is a way you can help cover his cost of goods sold directly, Nick?  Please keep is posted!

See this reply in the discussion

12 Replies

Jump to latestLatest
  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y

    I try to follow tax rules and regs absolutely to the letter, but I would find a way to keep my personal yard guy under the $600 limit if close.

    I heard of a guy recently that had gutters installed on their home, which has a rental attached. The bill was $682.  He wrote a check for $582 to the gutter co, then a $100 check to his supplier directly. Or maybe it was a gift card to the gas station he uses.  Maybe it was to  the dump where he disposes of waste. The details were a little sketchy, but the idea was intriguing.

    Again, I follow the rules, but perhaps there is a way you can help cover his cost of goods sold directly, Nick?  Please keep is posted!

  • Decatur, GA · Member since 2015 · 419 posts · 52 votes
    9y

    Thanks @Steve Vaughan.  It looks like I have paid him $575 year to date actually.  I expect I will need to have him take care of the lawn once more this year, which would put the number over $600.  Would it be legitimate to ask him (if he's willing) to allow me to pay him early next year for the last job this year?  There's a good chance I won't need him to do as much work next year.  

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y

    I guess you could ask him to wait and mess with it or get a little creative and do as my friend did.

    If I asked someone to wait I would sweeten the payment - give him 'interest'.  You may lose him this way.  On my personal residence especially, I wouldn't lose a good service provider over something so trivial.  No way.

  • Decatur, GA · Member since 2015 · 419 posts · 52 votes
    9y
    Originally posted by @Steve Vaughan:

    I guess you could ask him to wait and mess with it or get a little creative and do as my friend did.

    If I asked someone to wait I would sweeten the payment - give him 'interest'.  You may lose him this way.  On my personal residence especially, I wouldn't lose a good service provider over something so trivial.  No way.

     Good point.  It's in his interest to wait too though.  

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    9y

    some people think

    "Instant gratification takes too long"

    Don't presuppose what is important to sellers

    When u assume you make an a$$ out of you and me

    Sellers surprise me every day 👍🏼

  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    9y

    I guess as an accountant my firs thought is just...send a 1099. 

    If he's running a legitimate company he's reporting the income- all this does is confirm it. 

  • Decatur, GA · Member since 2015 · 419 posts · 52 votes
    9y

    Thanks @Natalie Kolodij.  Don't I need the W-9 (tax ID number) to send a 1099?

  • Decatur, GA · Member since 2015 · 419 posts · 52 votes
    9y
    Originally posted by @Brian Gibbons:

    some people think

    "Instant gratification takes too long"

    Don't presuppose what is important to sellers

    When u assume you make an a$$ out of you and me

    Sellers surprise me every day 👍🏼

     Not sure what you mean here, Brian .  Was this posted correctly?

  • Daniel HymanBusiness Member
    CPA · Milwaukee, WI · Member since 2016 · 2k+ posts · 1k+ votes
    9y
    Nick Brubaker yes you need a W-9 in order to prepare the 1099. I always advise my clients to get a signed W-9 prior to issuing any payments to independent contractors.
    My Online Accountant572 Reviews
  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    9y

    Pay his wife/son for the balance......suggested by anonymous.

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    9y

    cash

  • Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
    9y

    Tradesmen who have multiple accounts are independent contractors and as such are responsible for their own tax reporting - - 1099s are not required to my understanding.

    If this person only works for you, then yes you need the W-9/1099 as you cross the $600 limit.

    BTW:  paying cash under the table contributes to tax fraud - - for you and the tradesman.  I reject tenant rental applications because they can't verify their income on this basis.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.