LMJ wrote:Means the client paid the vendor already and is not asking for the W-9 instead of before payment.
I'm failing to understand how that affects your client's 1099 filing obligations.
They either file or they don't. If they don't, they have exposure to willful failure to file penalties.
If they file, they do so without a tax ID for the recipient. They will receive a B notice from the IRS notifying them to begin backup withholding until the recipient submits a W-9.
That means moving forward, if your client uses the services of this IC again, they should backup withhold and remit until the IC gives him a W-9.
If he never uses this IC again, then its water under the bridge.