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You will be financially penalized if your client has to file a 1099 without your tax ID number(s). You are required by law to provide them with your tax ID. Ed
by debacle 12y ago
You will be financially penalized if your client has to file a 1099 without your tax ID number(s). You are required by law to provide them with your tax ID.
Edit: This is also how consulting and contracting works. If you've never requested or sent someone an W-9/1099 before, get used to it.
- Apane101 12y agoHow so? They don't have my SIN number or anything. Please elaborate. I'm open to all suggestions here.
- debacle 12y agoEither you report that income on your taxes via 1099 and then the IRS goes to the company that created the 1099 and asks them why the 1099 doesn't have a TIN or you don't report the income on your taxes and the IRS finds out and fines you for tax evasion. Edit: I see that you are Canadian. Unfortunately for your aspirations of tax evasion, the US and Canada have a very friendly information sharing relationship.
- Apane101 12y agoLook, I'm not aspiring to do what you are suggesting. I'm simply inquiring more into the process. Also, if they don't have my information how will they find out who's who? There are at least 100 people in my city with the same name. I'm geniuinely curious as to how this whole thing works..