Do I need to provide my social security number to an employer who hasn't had me fill out a W-2 or any tax forms?

Thanks for the clarification. I'm in a similar situation but worried about identity theft. Is there any risk in providing my SSN now after working with them for 2 years? Should I ask for some kind of contract first to protect myself?

Wait but wouldn't the employer be in trouble for not doing this properly for years? Are there penalties they'd face? And would the OP potentially get audited if they start filing proper forms now after years of not doing it?

Identity theft concerns are valid, but providing your SSN on an official IRS W-9 form is standard business practice. If you're concerned, you can ask how they'll store your information securely. You could also request they only keep the W-9 long enough to file the 1099-NEC and then destroy/return it. Yes, the employer could potentially face penalties for not properly filing 1099s in previous years. The IRS can assess penalties for each missing 1099 form, with amounts varying based on how late they are and whether the failure was intentional. However, the IRS is often more lenient with small businesses making good-faith efforts to correct mistakes.

Does this actually work for situations where there were mistakes in previous years? Like can it tell you if you're at risk of an audit because your employer messed up?

How much does this cost? These tax help services always end up being super expensive in my experience.

Yes, it actually does address past reporting issues! It has a section specifically for correcting previous mistakes that explains your obligations versus the employer's responsibilities. It helped me understand that I wasn't at fault for my client's failure to issue 1099s as long as I'd been properly reporting my income. I don't think it's appropriate to discuss exact pricing in this forum, but I found it very reasonable compared to paying for a consultation with a tax professional. They also offer different service levels depending on how much help you need.

Wait how does this even work? The IRS phone system is totally broken - how can some random service get you through when nobody else can?

This sounds like a scam tbh. Nobody can magically get through the IRS phone system faster than anyone else. They probably just charge you to wait on hold themselves.

It's not magic - they essentially use automated technology to navigate the IRS phone system and wait on hold for you. Once they get through to an agent, they call you and connect you directly. It's completely legitimate and saves you from having to personally sit through hours of hold music. They don't just charge you to wait on hold themselves - you don't need to stay on the phone during the wait time at all. Their system handles that part, and you only get called when there's an actual IRS agent ready to speak with you. Big difference from sitting on hold yourself for hours.

What happened in your situation? Did you get in trouble with the IRS? Im worried about something similar.

I didn't get in trouble since I'd been reporting all my income properly on my Schedule C forms each year. But it created a mess because they tried to issue me 1099s under a business name that wasn't properly registered with the state or IRS. I ended up having to provide additional documentation during tax filing to explain the mismatch between the 1099 information and the business information the IRS had on file. It was a paperwork headache but not a financial or legal problem since I'd been honest about my income all along.

Still $600 for 1099-NEC (non-employee compensation). You might be thinking of the 1099-K threshold for payment platforms like Venmo and PayPal which was supposed to change to $600 but got delayed again for 2024 filings. It's staying at $20,000 for now.