Lucho Posted May 15, 2011 Report Posted May 15, 2011 My client has to start withholding 28% from the amount paid to any contractor that does not provide a tax id (by IRS Request. If anyone has had this situation, I will appreciate any guidance on how my client has to proceed sending those payments. So far he has 1 or 2 people that has not provided valid tax payers ID. Thank you in advance. Lucho Quote
TAXBILLY Posted May 16, 2011 Report Posted May 16, 2011 http://www.irs.gov/pub/irs-pdf/p1281.pdf taxbilly Quote
Lucho Posted May 17, 2011 Author Report Posted May 17, 2011 http://www.irs.gov/pub/irs-pdf/p1281.pdf taxbilly Thank you Taxbilly. Lucho Quote
jainen Posted June 7, 2011 Report Posted June 7, 2011 >>any contractor that does not provide a tax id << Sounds like the feds have already figured out that he is hiring illegal aliens. Quote
ILLMAS Posted June 7, 2011 Report Posted June 7, 2011 >>any contractor that does not provide a tax id << Sounds like the feds have already figured out that he is hiring illegal aliens. Good assumption, but I don't think illegal aliens are the only contractors that like to get paid in cash. Quote
Catherine Posted June 7, 2011 Report Posted June 7, 2011 Good assumption, but I don't think illegal aliens are the only contractors that like to get paid in cash. That's for sure! One of my corporate clients had a (US citizen) repair guy who flat-out refused to give his SSN - but the office admin there kept cutting him checks without withholding 28%. I finally changed the "Pay to" line in QuickBooks to print "No more checks until SSN has been received!" and that finally worked (the admin didn't know what I'd changed, tee hee). That guy still does work for them - and every nickel is tracked. Quote
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