Getting a Tax Identification Number from Others (Form W-9)

Certain payments you make in your business for services to nonemployees must be reported to the IRS on Form 1099. In addition, a copy Form 1099 must also be provided to the recipient of the income reflected on the form.

Form 1099 must include the recipient's tax identification number.

Form W-9

If you don't have an individual's tax identification number, you need to get it.

Use Form W-9, Request for Taxpayer Identification Number and Certification to request a taxpayer I.D.

When Form 1099 Must Be Filed

Form 1099-MISC must be filed with the IRS for the following situations:

  • Payments of $600 or more to Nonemployees (Independent Contractors) such as accountants, attorneys, and subcontractors.
  • Rent payments of $600 or more, but not if paid to real estate agents.
  • Prizes and awards of $600 or more that are not for services, such as winnings on TV or radio shows.
  • Royalty payments of $10 or more.
  • Payments to certain crew members, by operators of fishing boats.
  • Sales of $5,000 or more of consumer goods to a person for resale anywhere other than in a permanent retail establishment.

Form 1096

Form 1096 is a transmittal form. It is used to summarize data on all 1099s being filed with the IRS.

You attach all 1099s to Form 1096 and submit them to the IRS.

Due Dates

Form 1099 is due on the following dates:

  • To the recipient, by January 31.
  • To the IRS, by February 28, if mailed.
  • To the IRS, by March 31, if filed electronically.

Note: If the due date falls on a Saturday, Sunday, or legal holiday, the due date is the next business day.

IRS Penalties

Form 1099-MISC must include the recipients tax identification or you, as the payer, could be subject to a penalty.

Moreover, the recipient's tax identification must be stated correctly on Form 1099 or, again, you could be subject to a penalty.