Can I business hold my 1099 Hostage

I received a letter dated Feb 24th 2016 from a business I done a job for. They said I have your 1099 ready to mail but waiting on your W-9. I’ve never received anything from this company asking for a W-9 until now. Can I take legal action since the 1099 should have been mailed by Jan. 31st?

Asked on February 28, 2016 under Business Law, Illinois


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

They do need the W-9 to give you the 1099. But you can't take legal action for this for two reasons:
1) You can fix the situation by sending them a W-9. The law will not entertain a lawsuit when it could have been averted by a simple, inexpensive, easy act; the law expects you to minimize costs and losses, not maximize them (by going to an unnecessary lawsuit).
2) You have not suffered any loss or damage from the delay, and the law does not provide compensation when there is nothing for which to be compensated.
So send them the form and get your 1099.

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