question for tax expert?

i have sent 2 official w-9 requests to a payee ( who happens to be my brother ) and i have delivery confirmation reciepts as proof- i have also made 28% back up withholding payments to the IRS on his behalf due to the fact that the payee continues to refuse to give me his social security number or ein. 1)what penalties will be imposed on me, and or the payee by the IRS because i can’t submit the social security number on the 1099 misc form? 2)the income i give to the payee is because he co-wrote some of the music that is selling, the checks come to me, there are no contracts between us, so i pay him a percentage voluntarily, the payments come from an independant music distributor, so is that a royalty or non-employee compensation so far as the 1099 misc form goes ? 3)also, i have sent my payee $550.45. i have sent the IRS $114.22 (28 % back up withholding) if those 2 figures are added, so i assume that equals $664.67 that my brother has earned? how do i express that on the 1099 misc form?
( my payee sure is stupid ) so i don’t know what else to do

,,any tax experts out there? ,Small Business Tax Tips: are You Ready for the January 31 Deadline? ,what types of deductions are to be withheld from payroll? ,Settlement check taxed for whole amount, then split in two as a w2 and 1099 how do i file this for taxes.? ,Are you a tax expert? Question about a late return? ,

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Comments (1)

 

  1. CP says:
    April 29, 2010 at 5:37 am

    Don’t pay somebody until/unless they fill out the correct paperwork. They will either fill it out so they can get paid, or they won’t fill it out and it would save you all this hassle.

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