1

As a rental property operator I know how to file forms 1099-NEC or 1099-MISC for payments to plumbers, heating companies and vendors. These folks all provide a W-9 on request.

How about for a payment to a tenant where there is no trust relation?

Is there third party forwarding service or some other way the tenant and operator can file, such that the operator never learns the tenant's SSN?

If the tenant won't provide an SSN, the only obvious option under IRS rules is backup withholding which is a pain all around.

Reference: https://www.irs.gov/filing/e-file-forms-1099-with-iris

5
  • 5
    why do you need to provide a 1099 to your tenant?
    – littleadv
    Dec 30, 2023 at 1:05
  • 2
    "payment to a tenant where there is no trust relation" Maybe I'm missing something, but what is the situation where (a) there is no trust relation between landlord and tenant, but (b) you are wanting/needing to pay them dispite this lack of trust?
    – TripeHound
    Dec 30, 2023 at 7:15
  • Is it possible that the question is about returning the rental deposit potentially with interest earned over the years the property was leased? While the deposit should not have been included as income in year one, and thus not needing a 1099 at the end of the term, the interest could be another matter. Dec 30, 2023 at 10:50
  • I believe it is illegal to refuse a valid request for a SSN. See 26 CFR § 301.6109-1.B: "A U.S. person whose number must be included on a document filed by another person must give the taxpayer identifying number so required to the other person on request."
    – Brian
    Jan 3 at 22:03
  • @mhoran_psprep: You could be right, but normally, landlords collect the SSN up front. I suppose that might not be possible in regions that forbid landlords from requiring an SSN. However, this only blocks using SSN for screening, not requesting it if it becomes necessary to pay the tenant. The law I reference is a federal law, so it can't be blocked by a regional law. It could be blocked if the tenant was not a US person, but the requirements for a TIN are basically the same.
    – Brian
    Jan 3 at 22:16

0

You must log in to answer this question.

Browse other questions tagged .