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    CuriousGeorge2's Avatar
    CuriousGeorge2 Posts: 1, Reputation: 1
    New Member

    Jan 5, 2010, 04:03 PM
    What is the IRS fine ($) for not 1099 getting a 1099 from a contractor?
    I know a 1099 is needed for anyone paid over $600, but what if, for argument sake, one cannot 1099 the contractor because they refuse or don't have a SS#, etc. What are the penalties for this beside not being able to expense the transaction? What does the IRS do?
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert

    Jan 5, 2010, 04:23 PM

    You were required to get W-9 from the contractor before making the first payment.
    MLSNC's Avatar
    MLSNC Posts: 158, Reputation: 17
    Junior Member

    Jan 5, 2010, 10:05 PM

    In most cases it is $50 for each 1099 not filed. I believe the Service can also fine you an additional $50 if you do not have the Soc. Sec. No. In that case it would be $100 for each 1099 not filed. However, a flagrant violation could result in additional penalties. And by not having the W-9 with the Soc. Sec. No. the IRS may argue the you should have withheld taxes on the payments (backup withholding) and now they want their money.
    kfoltz's Avatar
    kfoltz Posts: 1, Reputation: 1
    New Member

    May 22, 2011, 09:36 PM
    You should have requested the information necessary to complete the 1099, when you hired the person to do the workand not after-the-fact. If you were audited, I think the penality is not very severe for non-reporting a 1099. It could be under $100 per occurrence.

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