So, I've been working with a client for the last 8 months now. And I built their entire web application from the ground up. I also outsourced some of the work because of the scale.<p>Anyhow, they've just asked me to send over a W9 and they will send over a 1099. However, I'd rather not go that route because I'm going to have to track down my outsourced workers and get them to send me their W9's and it's just a nightmare.<p>How can I decline their request?<p>Cheers!
You seem to be confused. Refusing your client's W-9 request doesn't eliminate your need to issue 1099s for your subcontractors.<p>There are potential penalties associated with each. Additionally, if you refuse to provide the W-9 and are still doing work for your client, don't be surprised if the client starts backup withholding.
Just talk to them. Standard Operating Procedure would be for them to file a 1099, which generally requires a W9 that provides your information.<p>The person asking for a W9 from you is probably not familiar with how this changes when working with workers outside the US. You can explain that you won't be able to complete a W9 because they're only for US citizens and residents and see where the conversation goes from there.<p>They still need to declare and classify their expense, so may need you to complete some other paperwork, but it doesn't really effect anything about your own tax obligations or filing requirements. Don't worry about it.
You will be financially penalized if your client has to file a 1099 without your tax ID number(s). You are required by law to provide them with your tax ID.<p>Edit: This is also how consulting and contracting works. If you've never requested or sent someone an W-9/1099 before, get used to it.