Businesses required to file 1099 forms with the IRS must obtain the correct recipient taxpayer identification number (TIN) to report, for example, income paid to the recipient, real estate transactions, mortgage interest the recipient paid, acquisition or abandonment of secured property, cancellation of debt, or contributions the recipient made to an IRA.
In order to obtain the correct TIN (SSN or tax ID) of a U.S person, the 1099 filer would usually use Form W-9 (Request for Taxpayer Identification Number and Certification). For federal purposes, a U.S. person includes but is not limited to: An individual who is a U.S. citizen or U.S. resident alien; a partnership, corporation, company, or association created or organized in the United States or under the laws of the United States; any estate (other than a foreign estate); or A domestic trust.
The W-9 form includes boxes such as name, federal classification (Individual/sole proprietor, C Corporation, S Corporation, Partnership), address, account numbers and other information. If the recipient fails to furnish the correct TIN to a requester, s/he is subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect.
1099 filers can obtain a PDF W-9 form which can be filled out, printed and sent to the recipient simply by visiting the IRS website.
For business filers who want to print 1099 forms to send to recipients and the IRS, we offer W2 Mate software, which covers all the W2 and 1099 filing needs for businesses and tax professionals. The software can be downloaded as a free demo from our download page. You can purchase the software and receive it instantly.
To learn more about W2 Mate, please visit the 1099 software page.