I am still preparing the 1099 forms. One contractor fails to provide us his tax id. IRS 1099 instructions indicate that there may be penalty for not providing the tax id. Shoud I still file the 1099 for him without the tax ID? Or it is better off not to file at all.

Pok:

Give him, either in person or by mail, a W-9. That notifies the contractor that you are formally requesting tax ID number information from him.

If he fails to provide you with the tax ID number, then notify the IRS and request instructions.

How much money did you pay this contractor? If it is less than $600, there is no requirement to submit the Form 1099 for him.