We had a company that has not done business with us since
10/1/2005. They sent us a W-9 on 6/2006 along with a Blanet Certificate of Resale, and Application for Credit. Anyone know why they would be doing this, they are no longer a customer and we will recieve no monies from them in the 2006 tax year. She claims they have two years to send it out, but surely they cannot issue a 1099 at this time.
I can't answer your question, but it's moot at this point. (They're probably being audited for something and their records are a mess, but if all they're willing to tell you is "we can," all you need to say is "no.") The time to ask for a W-9 is before you cut a payment check. It's the only time you have leverage. The worst thing that can happen to you if you ignore the request is that they'll backup withhold from your payment, but since you're not going to be getting any payments, there's no consequence at all. Throw it away.
-- Phil Marti Clarksburg, MD
wrote
They are probaby trying to tie up loose ends, either before they get audited, or because of an audit.
Well, I trust you included that income on your tax return - as you should have. If so, it should make no difference to you if they issue the 1099 for 2005 in 2010. But yes, they can issue a 2005 Form 1099 "at this time". Otherwise, don't respond to their request. I wouldn't provide it.
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
Thanks for all the replies, and yes, we claimed it on our taxes, but just in the gross sales.
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