Dear Consumer Ed: 

How can you issue a 1099 to a contractor who will not provide his Social Security number or his Federal ID number?  Can you send the 1099 to the IRS without this information?

Consumer Ed says: 

It appears that not all contractors are required to have a Social Security Number (SSN) to work in the United States.  Many are issued a Tax Identification Number (TIN) by the IRS.  The TIN may be used on Form 1099 instead of the SSN.  If the contractor does not provide a TIN or SSN, leave the box for the TIN or SSN blank on the Form 1099.  The IRS may impose a penalty if a 1099 form is submitted without a TIN or SSN.  However, the penalty will not apply if you can show the lack of information was due to an event beyond your control or due to significant mitigating factors.  You must also be able to show that you acted in a responsible manner and took steps to avoid the omission of this information, such as by writing the contractor to ask for this information.

Before proceeding, you should contact the IRS at 1-800-829-4933 to ensure that you have a full understanding of these requirements. 

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