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Dealer filing 1099?

Started by Mishmashman,

27 posts in this topic

Mishmashman

Mishmashman

Posted
Posted

I just sold some books to a dealer who's now asking me for my social security number because he says he needs to file a 1099. I've done deals with this dealer by paypal before and he's never asked me for this info until now, which would be our first check transaction. He explains this is routine (um not to me).

 

I think the dealer is legit but something about this whole SSN/1099 issue is hinky. Could someone explain what's going on here?

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CAHokie

CAHokie

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There is no way in heck, I would ever give my SS number to a dealer for his taxes. That is ludicrous. I seriously hope you did not entertain that request.

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Doohickamabob

Doohickamabob

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I just sold some books to a dealer who's now asking me for my social security number because he says he needs to file a 1099.

It sounds like he's trying to claim you as an employee in his business so he can use you for a write-off. Ridiculous. Never give anybody your SSN unless you know exactly what it's for and are 100% sure that it's legit.

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kav

kav

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Just stare at him like he's lost his damn mind, walk away, pause at the door and turn to stare at him some more, then leave.

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Columbia Comics

Columbia Comics

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No, there's no way on earth I'm turning over my SSN. But I'm at a loss over why he wants it in the first place.

 

From a tax perspective, it would provide a paper trail that showed his cost. Of course, it would put you on the hook as the IRS would see the amount as income and you'd have to prove your cost basis or be on the hook for taxes on the full amount.

 

 

 

 

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brendanb438

brendanb438

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New 1099 Reporting Requirements

 

Above link has a ton of good info on all this BS revolving around 1099s being issued by businesses doing transactions of $600 plus.

 

Bottom line from what I understand is that if you are not considering yourself to be a small business you can tell him to shove it.

 

Now if you are doing a ton of sales this year and might come under the scrutiny of the IRS you may want to comply. If you can say this was a sale as a hobby versus small business than no worries. If there is any doubt in your mind I recommend talking with a CPA.

 

The past 3 years I have done $20,000 + and 200+ transactions on eBay with PayPal and you do not want to get on the IRS' radar. I would worry about the person attempting to 1099 you even if you do not provide the SS #. Below is some info on it.

 

Issue Form 1099-MISC without a SSN or TIN if you are unable to get this information from the contractor. If the contractor does not have a TIN and refuses to provide you with a SSN, you may still issue Form 1099-MISC. The IRS may assess a $50 penalty against you for submitting an incomplete Form 1099. However, if you can show the omission was due to a reasonable cause and not willful negligence, the IRS may grant an exemption to the penalty. Failure of the payee to return a complete Form W-9 to you may be grounds for an exemption.

 

 

 

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dupont2005

dupont2005

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Posted

I've been a vendor for retail stores and didn't need to provide any info. Not even my ID if I remember correctly. I had to sign a paper and I got a receipt. No 1099. I imagine if the transaction was over $10k or something maybe things are different, but definitely smart to be wary and research first.

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stanley1883

stanley1883

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if you give him your SSN, you've lost your damn mind

 

Tell him he's SOL

 

+ 1

 

No legitimate reason why he would need your SS #. However, after speaking with my tax accountant, he said that I need your bank acct and routing #'s to file my 9672. Just standard stuff really, feel free to PM me with the info.

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