1099 Misc Contractor says doesn't get 1099 'cause sales tax

Yes, they need to receive a 1099. Every Mom and Pop operation collects sales tax if they're selling products, regardless
if they're incorporated or not.

Unless your contractor can show you his Article of Incorporation
where his company is registered, he will receive a 1099.

If he reports the income or not is his problem, you've done
your part.

CJ is right! Resale has nothing to do with being a Corporation. They get the 1099!!

Anon

Did you read the fine print, Art. If they are subject to receive a 1099, and do not complete a W-9 at your request, you may deduct backup withholding from payments to them. For 2005, I believe the percentage is 25%, but it varies from year to year. When you make them aware of this little quirk, they are usually quick to comply. Best to do this before payment is made, of course, otherwise, they lose their motivation. Here's another one of those little quirks. If you were required to collect backup withholding, and did not, you are still liable for payment of the backup withholding.

I work for a corporation, by the way, and anytime a customer sends a W-9, I complete it. There is just no reason not to, unless you are contemplating tax evasion.