TaxGuyBill
Level 15
01-24-2022
07:00 PM
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Be aware that your client could be subject to a penalty for not filing a correct 1099. It is also hypothetically possible your client could be subject to paying the 24% Backup Withholding for that payment.
Make sure your client knows that he needs to receive the W-9 from the contractor BEFORE he makes any payments. If he does not receive the W-9, he is required to withhold 24% as Backup Withholding.