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TaxMama’s TaxQuips False Social Security Numbers

2017-05-02 by Eva Rosenberg

mask, disguise photoToday TaxMama® hears from Lue with a question that is more common than you may realize.” A friend who’s been doing work for my husband regularly for the past two years knowingly gave him a false Social Security Number. We were just notified of this by the IRS. He won’t provide us with a real Social Security Number, which I think is so messed up, considering he’s supposed to be a good friend. What can we do so we don’t suffer the repercussions of this?”

 

Dear Friends and Family and Lue,

Frankly, while I know how you feel, it’s not your problem. The IRS sent your husband a notice. It tells your husband to withhold 28% of all money that is paid this contractor.

He MUST do this if this man continues to work for him.

One of the problems with this withholding is – without a Social Security number, that money won’t get credited to your friend’s income tax account as his tax payment.
And if he never files a tax return, HE is throwing this money away.

Your husband has no choice in the matter, if this person continues to work for him. If your husband tries to be a good guy and does not withhold the money and send it to the IRS, your husband (and you) will have to pay the friend’s taxes.

So suggest to your husband that HE has two choices.
1) Continue to hire his friend and withhold the money.

or

2) Stop hiring his friend and get out of this conflict that your husband never created.

Good luck with this. I see a fight coming – and perhaps at least 1 broken relationship.

I hope it’s not yours.

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Photo by c.paras

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