Riolo insisting upon having my confidential tax ID information...

Discussion in 'Trucker Taxes and Truck Financing' started by stocktonhauler, Oct 26, 2012.

  1. stocktonhauler

    stocktonhauler Medium Load Member

    396
    163
    Dec 9, 2007
    Stockton, C
    0
    Two years ago, I had suffered a long period of pressure on a broker who had been scammed into a double-brokered situation. The carrier they choose rebrokered the load to me, which was not strickly illegal, except that I didn't know it and later learned that he was in default, and couldn't or wouldn't pay me. So, through the shipper I eventually was able to make the originating broker pay me, even though that broker had lost it's money to the disreputable carrier-broker. Riolo was the contracted broker and a check was cut and sent to me, an amount that naturally was thousands of dollars less than the original contract with disreputable carrier-broker. After sending me the check, Riolo tried to insist that I complete a contract with them, then they wanted a W-9 from me. I argued that they were not paying me as a contracted carrier, but were paying to avoid a lawsuit for failure to properly broker a load for which I was the carrier of record. It didn't matter to me who paid, the shipper, the receiver, or broker, and so the broker was obviously inclined to settle the matter or else risk losing their contract with the shipper. It's clear that I don't have to complete any contract with this company. The W-9 issue is more complex though. My argument is that Riolo can do their taxes without sending me a 1099 form. Similarly, I really don't need this income reported by them as I have already declared this income through my tax statements. Many, many brokers simply don't issue 1099 forms anyway. Why am I obligated to provide confidential information to a company that bungled a load and discredited itself? Tax experts, please explain...Riolo is making threats, and frankly I don't want to have anything to do with that company...
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. azandy

    azandy Bobtail Member

    20
    9
    Oct 10, 2012
    Green Bay, WI
    0
    I'm not a tax expert but have owned a couple of business' in the past.
    If you receive any more than I think $600.00 in a given year, you are supossed to fill out a W-9 and give your info. They did pay you for a load you delivered, doesn't matter how you look at it. The IRS will see it that way. So they should be sending you a 1099. I'm guessing they want you to sign a contract because of liability issues.

    It's up to you if you want to report it or not, but the broker will send in that they paid you. They should have had you fill out your info before cutting you a check. They also should have had your insurance info first too.
     
    Lilbit and mamamullins Thank this.
  4. aiwiron

    aiwiron Road Train Member

    5,927
    5,224
    Aug 24, 2011
    Sunny Tampa Florida
    0
    mamamullins Thanks this.
  5. Autocar

    Autocar Road Train Member

    3,167
    2,356
    Apr 28, 2012
    The Hot Rod Shop Oxford, AL
    0
    This would involve his Federal Employer ID Number, not his private SS number.
     
    mamamullins Thanks this.
  6. aiwiron

    aiwiron Road Train Member

    5,927
    5,224
    Aug 24, 2011
    Sunny Tampa Florida
    0
    Does not matter, once payment is remitted and no further business is transacted no one is under obligation with either party. The payment was satisfied by both parties, accounts for a legal transaction.

    If the 1099 OR W-9 is required then that should have been disclosed in the initial contact agreement, Riolo can pack sand where the sun does not shine since they have no legal recourse.
     
  7. Autocar

    Autocar Road Train Member

    3,167
    2,356
    Apr 28, 2012
    The Hot Rod Shop Oxford, AL
    0
    I was only pointing out that it would be his FEIN, not his personal SS number involved. Different rules apply, as to security.
     
  8. aiwiron

    aiwiron Road Train Member

    5,927
    5,224
    Aug 24, 2011
    Sunny Tampa Florida
    0
    Some people use SSN, or EIN and no one can compel you to divulge that information after the fact, I am not the brightest bulb in the house but know the difference between the two.
     
  9. Roadmedic

    Roadmedic Road Train Member

    18,951
    8,961
    Apr 4, 2007
    0
    Two years ago and they are now trying this?

    First off.

    Companies are required to record the tax id number of the person they are paying for services. The threshold is 600.00, but it is wise to do this when payment is made. The tax id number is the social security number, or FEIN of the recipient of the money. It requires the completion of the W9.

    There are fines that can reach 50,000.00 to the company that does not comply with the 1099 reporting requirements. Most of the time, the penalty is less than 50.00. But it is in there and has been for many years.

    Whether you think you need to provide the information, consider that they are the ones that made the payment and it is why they are trying to comply with the information.

    If you have recorded the proper amount, why be a jerk about providing the data which you were required to do in the first place.
     
  10. aiwiron

    aiwiron Road Train Member

    5,927
    5,224
    Aug 24, 2011
    Sunny Tampa Florida
    0
    If they need it so bad then the best thing I would do is tell them to take it up with the IRS, they are subject to regulations which is obvious they did not ad heir to.

    If they are 2 years off then that is the problem of Riolo not your issue. They would not send a 1099-MISC but a W9 to start with, sounds like they have no clue what they are doing.

    Riolo is required to fill out the 1099-misc and not the recipient of the payment of services rendered.

    Payments are part of box 7 on the 1099-misc
     
  11. Roadmedic

    Roadmedic Road Train Member

    18,951
    8,961
    Apr 4, 2007
    0
    The problem is the IRS rules in the first place.

    There may be more to the story as provided by the poster. I have had dealings in the past with such people. You request the information from them and they refuse to send it. There are issues that come up and people decide they will not comply with the rules.

    You cannot take it up with the IRS. IRS will not release information on a taxpayer.

    They may have received a notice from the IRS and are trying to get their ducks in the row.

    You are just adding fuel to the fire and giving faulty advice in my opinion.
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  • Draft saved Draft deleted