1099 Employee that no longer lives in the U.S

[Paccountant]

Hi guys,

I just finished working on w2s for the year and currently working on 1099s.

One of the 1099 contractors do not live here anymore in the states. I know i am supposed to file this to the Social Security Administration, but how do I send it to the contractor?..

Do i still need to file with the SSA? What do I do?

Thanks

 

[kirby]

Still file 1099 with the govt and mail his copy to his last known address. If he did not arrange to have his mail forwarded that's his problem

 

[Paccountant]

Thanks Kirby.

It gets worse. This was concerning my old HR manager. She is not a citizen so she was not under payroll. She was a 1099 employee.

She left at the beginning of last year and I took over her full responsibilities for payroll while being the accountant doing everything else.

She was HR, so she took care of all employee files. I think she moved out of the country and I dont even have any records of her. Address, social, tax id number, nothing...

Blah...

 

[kirby]

I see. So your choice is to either file an incomplete 1099 as you do not have social security number nor address OR to file nothing. Here is where you have to make a business decision.

Penalty for incorrect 1099 (missing address and ssn) is $100 and there is a 100% chance this will be spotted by IRS. Plus you will get a follow up letter that says "give us the correct info" and you still cannot do so.

Penalty for not filing = "intentional disregard" is $250 and there is a very much lower chance for that being spotted (would have to be spotted during an audit.)