Construction has gained a reputation; is it one of collaborative construction or mistrust? Everything in business is about reputation, whether you can trust or not. At Constructable we are building relationships founded on trust, not just structures or projects. It is precisely here that contractors fail: they fail to build trust with their clients.
If you can see my welcomed accountability and proactive transparency, it is like laying the first part of a foundation of trust. We aim for trust in all areas, so we become an open book. After all, it is your ideas we are building and your project that is seeing formation.
Should I Trust My Contractor
When the project owner and project contractor can sit at the table together, looking eye to eye at a common purpose, that is when the collaborative process is at its best. To be sure, this builds an enduring, open communication that we all will enjoy for many years and successful projects to come.
The construction world is full of broken promises and struggle, specifically where contractors fail. That is because he or she who pays the most will command the attention of the contractor. The best staff, the most manpower, and the quickest jobs belong to the most attractive contracts. But how do you get such white-glove service when you project is not the one to pay the most?
To prioritize a job, to avoid having to become a squeaky wheel, to not cannibalize one project in favor of another, it all takes a company that keeps the customer needs at heart, beyond the confines of a contract. What if you found a company that proactively sought solutions before they become problems? What if you found a team that included you on decisions in collaborative construction? What if you found a contractor that was restless for the success of your project so much so that he or she would not stop until it is completed, and you are satisfied? That is a contractor worth doing business with, and where most contractors fail. The ability to keep the customer-centered communication, client-focused accountability, and the best interest of our project stakeholders at heart are what set us apart from others. Constructable will not fail in treating our customers right and finishing projects the way they ought to be done. This is how we build trust with our clients, being sure that they get what they need out of every project.
Here at Constructable things are different: We offer tools to keep ourselves accountable and transparent before you even request it; feedback is a gift to us; and we always prioritize your job through proper staffing, strict adherence to your specifications and requirements, and go beyond what is required because of our heart of service to our customers. We take more than the minimum steps so that we can satisfy our customers time and again. Let us build trust with you; start an estimate today by clicking HERE or by emailing [email protected].
The business that is required to issue and file Form 1099 is responsible for requesting that its contractors, vendors, or other payees fill out and return Form W-9. Accordingly, a business who pays a person (including other businesses) more than $600 per year should have the payee fill out and sign Form W-9 at the time that the independent contractor, vendor, or other relationship commences, and prior to paying any sums to the person. Indeed, filling out Form W-9 should be a provision of the contract or agreement which provides for the work, services, or goods, and payment therefore, although failure to include this requirement in the contract or agreement does excuse a contractor, vendor, or other payee from providing the required information to the business on request.
Once a business obtains a filled out W-9 from a contractor, vendor, or other payee, the business must keep the form, or a copy thereof, in its records, and use the information on the form to prepare its 1099. Form W-9 is not filed with the IRS.
The information provided by a payee to a business on Form W-9 must be protected by the business. A business is not allowed to misuse or disclose the information provided to it by a worker, contractor, vendor, landlord, or other person, or the business may be subject to civil and/or criminal penalties.
Generally the business must begin backup withholding on all reportable payments to the payee within 30 days of receiving the notice, although the business should carefully review the notice for specific requirements.
If a payee refuses or neglects to provide a TIN when properly requested by a business, the business should immediately begin backup withholding, at the rate of 28 percent, on any reportable payments made to the payee (and remit this amount to the IRS).
Because each situation is unique and has its own facts and circumstances, we recommend you contact a tax attorney to discuss and obtain advice as to your particular situation. Whether you are a business, a contractor, a vendor, or other person, the tax attorneys at the Politte Law Offices are here to help.
I worked as a contractor for a couple of months in 2020 and have been asked to submit an invoice for payment along with W-9. This company has had data breaches and I no longer trust them with my TIN or other personal info (i.e., electronic deposit). I would rather forego payment ($2500) than provide W-9 info but is it possible to assign/designate another payee, i.e., church, charitable org, another individual, etc.? I assume the assigned payee would have to provide W-9, etc. and report the payment as income. If this is possible, would I still be liable for any taxes or reporting anything to the IRS?
Does this apply to a landlord who is renting out one half of a duplex where he lives in the other half? I have one contractor who gave me an invoice and contract, did excellent work, but is now giving me static about filling out the W-9. I am new to this whole thing, and my father neglected to go over any of this with me before he passed away. My tax preparer, who also worked with my father, is the one who told me this needed to be done.
If they fill out a Form W-9, they are required to certify they are a U.S. citizen or U.S. person (i.e., entity organized in the U.S.). If they are a foreign person, then they should not fill out Form W-9. Instead, they are required to fill Form W-8 or Form 8233.
Received CP-2100 for subs who no longer do work for the business. All information that is on file matches what the subs turned in on W-9 and what information is shown on the CP-2100 notice. What should be done by the business?
When you receive an IRS Notice CP2100, the first thing you should do is compare the error information with your business records. Check to see if the Form 1099 you filed matched the Form W-9 you received from the contractor.
My client issued a 1099 to a subcontractor prior to 1/31/18. The sub claims he never received it (all other subs received theirs). Same sub was slow to furnish a w-9. Client paid him wages in good faith that the w-9 was coming. Sub now is asking that we amend his 1099 to only include the income we paid him after the date he signed his w-9. And sub claims that we owe backup withholding on the amounts paid prior to the w-9.
Anyone engaged in a trade or business has an obligation to report all amounts paid to a contractor that are income to the contractor, so long as more than $600 is paid in a year, regardless of whether a Form W-9 is received and if it is received, when it is received.
The parties should look to their respective contracts or agreement with company and with each other (if any), as well as state law to determine their respective interests in the commissions and the joint account.
If there was a contract, your company may look at the contract to see who your company was required to pay, and/or whether the contract or payments were properly assigned from contractor to Subcontractor S LLC at any point. Also, look at to whom the payments were made. If your company properly made the payments to contractor instead of Subcontractor S LLC (as opposed to your company improperly making the payments to contractor when it should have made them to Subcontractor S LLC), absent a contract or agreement that provides otherwise, it would follow that your company should issue a Form 1099 to contractor because contractor was the recipient of the payments. In addition, look at invoices and correspondence from contractor or Subcontractor S LLC relative to payment. If contractor issued invoices, and payment was made to contractor in response, it follows that the Form 1099 should be issued to contractor. If invoices requested payment to Subcontractor S LLC, it follows that your company should have paid Subcontractor S LLC and issued a Form 1099 to Subcontractor S LLC (unless there is a contract basis stating otherwise).
I have used an independent contractor and paid him about $100,000 for work. He refuses to fill out a W9 and has told me that he wants me not to list these payments as a deduction because he did not report the payments on his tax form. Naturally I refused. Can I file an IRS Whistleblower suit. Is that worth doing. How can I compel him to provide his TIN.
Whatever you do, I suggest documenting your efforts to obtain his/her TIN. You can still file a 1099, but be prepared to respond to the IRS if the IRS comes back to you and informs you the 1099 is missing information. This is where the documentation can come in handy. It might be helpful to send the contractor to my blog so he/she can see some of the penalties that he/she may incur for failing to provide his/her TIN.
If you were an employee, the company for which you worked should have had you fill out a Form W-4 when you started working and should have verified your SSN and employment eligibility. If you provided this information to your former employer, your former employer can use this to fill out and issue you a Form W-2. If you were not an employee, and instead were a contractor, you may need to provide the company a Form W-9 so it can issue you a Form 1099. You do not have an obligation to provide your SSN to a third-party, however, and the company has an obligation to keep your information confidential and only use it for proper purposes (although the company if the company uses a payroll processor or hires someone else to file and furnish Form 1099, it may provide your information for these purposes). 2ff7e9595c
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