One of our Independent Contractor sent us a W9 with a new EIN#. Should I process two 1099 forms this year, one with the old number and another with new number? or Should I issue their 2020 1099 using their new#?
Should I issue two 1099 forms for an Independent Contractor that updated their EIN#?
I would avoid duplicating 1099s if at all possible.
I would first ask the contractor if the new number is correct, or was it a mistake? You don't want to assume they simply got a new EIN (once a business/person obtains an EIN, they don't normally change unless the business itself changed).
If the new number was intentionally given and correct, then I would simply issue their 2020 Form 1099 with that EIN number and disregard the old number.
Filed Under: Tax