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

While not a expert at all myself but know a few very good CPA's in my life they are qualified to consult tho I am not. But being a business owner more than once has blessed me with a little bit of information on this matter, so with nothing more than a certified CPA's advice and a good lawyer I share with the O/P.

If a company or corporation fails the necessary filing of the 1099-MISC then that burden is on them, after two years and the OP reported the income already then Riolo is at fault. I would almost bet a internal audit or a upcoming IRS audit. The IRS is not going to come after the OP, they already received the reported income. The burden is on Riolo now and cannot compel the OP to provide the 1099-MISC, that is what they file and not the OP.

 

You have never dealt with the normal people then.

The law actually requires all business entities to provide a 1099 to any business that they end up doing 600.00 business with. This is an awkward situation for a business to look at. Number one, is that there are many they do business with and so instead of getting the information up front, when the payment is made, they will request it later in the year.

If they do not receive the information back, they will file the 1099 miscellaneous with the name of the recipient on it with as much information as they have. This may be done when the recipient does not comply and return the W-9 or it was lost in the mail and not received in the first place.

So, if they filed it blank, then the IRS, might contact them for additional information. This request may have led them to the contacting the poster in the first place. We do not know.

But, to blatantly state not to comply is where I find the fault.

I have to get this information for many of my clients and it is not a fun topic.

One place that I use twice a month, is not interested in providing the information for me to send them a 1099 for my own trucking business. They say it is not any of my business.

In the event, that the poster refuses to comply and the IRS has an audit and proof is shown, then maybe the IRS needs to contact the poster.

I see this becoming an even larger problem in the fight to catch the non filers by the IRS. They have raised the fines to $250.00 per 1099 now.

 

IF this matter is bothering you so much then why not book 1hr of time with a tax attorney and get his/her opinion? This is a legal matter pertaining to your business and should be able to write this off your taxes so in the end would be "free" advice. My opinion is that it was a legal contract and when payment is made by one party and accepted by the other the contract is concluded if all conditions are met. To try and enforce something a few years down the road would not hold up. If the receiver of the fee paid complies with all tax reporting laws then I think it is a non-starter and I wouldn't worry about it but my question is: Is there some reason you do not want to provide the information to them?

 

From a legal standpoint...you cannot sign a new contract to replace the original contract from 2 years ago that should have been enforced from the time that you signed it. Not only that the broker who failed and never paid should have sent you the original contract signed by him and you, and you would have sent them information about your insurance, and a w-9 filled out by you which I am sure you sent that information to Riolo to get the payment. Now, you are not required to fill out a new contract that was signed over 2 years ago, but there is nothing wrong with filling out a w-9 to satisfy the information needed for them to complete their 1099-misc. The only time you sign a new contract is if there are accessorials that need to be included for payment by the broker...but that it is it not from 2 years ago. Since you are an owner operator you should have a EIN number, and that is all they are needing. The IRS will not come after you since you have already complied by stating it in your wages, but RIOLO needs to satisfy the requirements that is needed to comply with the IRS regulations.

Now as far as the contract..if they have the original contract that was signed by the broker and Riolo, who then turned around and brokered it out to you( with all the documents you provided from the original contract)..they have all documents required to attach to the proof of payment...so they should have your EIN number already since you had to provide that to the broker who failed..so if they call you again and you sent in the original contract that was signed by you and the broker, and it had your EIN number on the paperwork then they have all the documents that they need. If they don't have your EIN number, then just fill out the W-9 and send it to them and that is it.

 

If I read this correctly, that you were paid by the original broker, and not the broker that wants the W9 information? I ran in to this once myself, I did an insurance job for a customer, got paid, then near the end of the year got the request in the mail from the insurance company for my ein. Time had gone by and I couldn't remember the details, so I pulled the files and found the invoice with supporting documents and realized that the insurance company had given me the go ahead after approving my estimate to do the job. I sent in the ein without thinking much about it and later got to thinking about that, my customer paid me and most likely added that to my yearly 1099 and sent that in to the IRS. Now, the insurance company having paid to do the work, also sent in a 1099, and my guess is that that would have been a double reporting of that income to me, that is just my experience with this, I would agree with the earlier poster that said to consult with a tax expert before you make a move, and like road medic said, anyone that refuses to submit their tax reporting information when requested by a payer, is subject to IRS penalties. I also agree that two years have past, and that will complicate this issue. My suggestion is to get some direction from a good tax attorney instead of a bunch of hairy legged truckdrivers... LOL

 

HEY!

I resemble that remark................

 

When you signed and cashed the check means you agreed to the revised terms. You shouldn't of cashed the check if you didn't agree. The money was for settling a debt for work performed. You are required by the IRS to fill out a W-9.

So in other words you can't hide the money as NOT income because it is.

Since you are not a gov't entity or another commodity broker or financial institution you are not exempt.

Sorry for the pdf format. You can read it all here'

http://www.irs.gov/pub/irs-pdf/fw9.pdf

 

Stocktonhauler u have nothing to worry about as long as u declared the amount u were paid on your taxes. Aiwiron ur also correct Riolo should have followed proper procedures obtaining the proper information first, then making payment. Now their finiance office is trying to put things into prospective and can't. According to the IRS, if Riolo is making the payment they are required to fill out a proper 1099, with all payee information and report the information to the IRS. This gives the IRS the ability to cross reference the information on the persons tax report of the payee. There is no compromising here, the IRS can inflict more pain on a company than anyone of us can bare. My suggestion is, Give them the proper EIN number and the required information needed for them to provide you with a proper 1099 so you can provide that to your CPA to properly fill your taxes out, well documented. Even though u don't have to, since Riolo screwed up, I have a feeling this is not going away.