Do I need to send 1099?

Are you a business? Do you have a W-9 from the wholesaler? If so, what type of entity are they?

Ira Smilovitz

I am a sole proprietorship. I do not have a W9 from the wholesaler. I have never had anyone offer me a W9, I always need to ask. Judging by the receipts I get, I think the wholesaler is also a sole proprietorship, no LLC or Inc.

Thanks, Mikek

It's your responsibility to ask for the W-9. If the vendor fails to provide a valid TIN when asked, you are supposed to withhold taxes from any payment you make to them. The W-9 also lets you know what entity type you are dealing with. Not all entities need to be issued 1099s, but that is in flux as the IRS is trying to expand the scope of 1099 reporting.

Ira Smilovitz

The W-9 also lets you know what entity type you are dealing with. Not all entities need to be issued 1099s, but that is in flux as the IRS is trying to expand the scope of 1099 reporting.

What type of entity does not need a 1099 to be sent? I have an eerie feeling I have two vendors that I may need to send

Thanks, Mikek

See the instructions for preparing the Form 1099 series. It depends on the specific form in the series and sometimes which fields are being used.

Ira Smilovitz, EA