hlunsford[at]bellsouth.net wrote:
- quote -

I note the header lists this and previous reply dated June
29th. Looks like the net burped again, since both must have
been written back around April 1st.

ChEAr$,
Harlan Lunsford, EA in LA
Independence Day, July 4th 2006

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timjowers[at]gmail.com wrote:

- quote -

A client last year thought she had to send out 1099's in the
same situation. And IF she had been doing this on a
repetitive basis which would then indicate she was in a
trade or business, of course she would have.

But this was a one time affair and she'll never do it again,
so results were reported as a short term capital gain and no
1099's were necessary.

ChEAr$,
Harlan Lunsford, EA n LA

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LTSLLC wrote:

- quote -

The IRS has enough fish to fry as it is, and discourages
people from filing unnecessary paperwork. If this is a one
time event and not a trade or business, then no 1099 should
be filed.

- quote -

that of course is not our concern. Unless he happens to
walk in our door! (grin)

ChEAr$,
Harlan Lunsford, EA n LA

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Thanks everyone for the advice. It was not done as a
corporation so I think I'm OK. I sent him a registered
letter asking for a W-9 and stating what he has been paid to
cover things somewhat.

Best wishes,
TimJowers

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Follow Catherine's great advice.

If the house you are fixing up is for your trade or
business, then you are REQUIRED to file the Form 1099-MISC
for the money you paid to the person.

If the house is for your personal use, then you are not
required to file the 1099 but you can still file the Form
1099 IF YOU WANT TO, and in this situation, you should want
to as the person you paid the money to very likely isn't
giving you his SSN/EIN because he doesn't want to report the
income on his tax return.

Rudy
www.LizcanoTaxServicesLLC.com

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<timjowers[at]gmail.com> wrote:

- quote -

Having a receipt and other common documentation such as work
orders, progress billing statements, etc. that details the
work performed should be sufficient to satisfy the
documentation requirements for adding your expenditures to
the cost basis of the house. So long as you get a your
documentation and the purpose you're looking to satisfy is
related to the cost basis of the property, I wouldn't worry
too much about the lack of a 1099.

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timjowers[at]gmail.com wrote:

- quote -

A 1099-MISC gets issued whe you pay an unincorporated
business or person for work done in the normal course of
YOUR trade or business. What trade or business were you
engaged in when you paid this person $12,800 from your
personal funds and why didn't you first transfer the money
to your business account before you paid them?

Gene E. Utterback, EA, RFC

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- quote -

A common thing I find among my accounting clients in 1099
season is that they have someone or other among the
independent contractors who either refuses to give their
SSN, or on occasion, gives a fake number. I prepare the
1099's with no SSN and send them in to the IRS. When the
inevitable letter comes from IRS, I have a standard letter
to send back, saying in effect, here are steps taken to
obtain SSN and taxpayer refused (or, this is the number
given by the taxpayer); here is all contact information we
have on said person. Then the IRS can go after the bozo.

So I'd recommend that you send him a 1099 with SSN missing,
send the 1099 and 1096 summary to IRS, and then let him
sweat. Just don't expect to get any more work out of him.

Catherine

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<timjowers[at]gmail.com> wrote:

- quote -

You need issue 1099's only for payments made in the course
of your trade or business.

- quote -

No.

- quote -

Always. The time to get the W-9 is before you pay the bill.
If you were in a 1099 situation, you would backup withhold
if the payee refused to give you a TIN. You lose that
leverage when you cut the check.

If you do have to issue a 1099 for this payment, include the
information you have. The IRS should penalize you, but they
probably won't.

--
Phil Marti
Clarksburg, MD

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I paid a person about $12,800 for contracting work and
fixtures but he refuses to give me a W9. I have sent him a
registered letter. Do I have to file a 1099 given I am doing
this from personal funds? When I try to sell the house I'm
fixing up will I have a problem claiming against this
expenditure? (I have receipts for most of the money).

Advice?

Thanks!
TimJowers

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