farm lease question

In the past, all he would have needed was a receipt from you to show the rent as an expense against his profits. Now the IRS is getting picky, and wants to know who he paid, how much, and just to make sure they get their cut of your income - your SS#.

Millions of people think that Tax Evasion id O.K. as long as they don't get caught. Like a few hundred or thousand dollars for lets say land rent. He does not have my ss# , he paid cash, FREE CASH right, NO: TAX FRAUD. You can go to jail for that.

It really does not matter if you have done it for years either. The IRS clock starts to run when they find out, and there is no time limit (for them). Wouldn't it be nice to get all your farm returns audited back to 1988 or so? Sounds like a pain in the to me. Don't care if uncle Bub did it all his life.

Okay, I've been out of the "tax loop" for a few years but it used to be if you gave the name and address of a recipient on a 1099 you didn't have to supply their EIN or SS numbers; you could leave that blank if someone didn't want to "comply". If everyone reported proper income/expenses properly there was no issue. Has that changed?

The IRS will fill in the number when they reconcile the 1099 to the returns. This is not a good option for you. You are required to give the renter your ss#.

I have a friend that is a computer professional. According to her not giving your SS# to someone that has a legitimate use for it is silly. SS#'s are used for so many thing that anyone handy with a computer can find it if they want it. If they can't find it, they can buy it if they really want it.

He needs your number or tax ID # so the IRS can cross reference it easily.
there has been a number of changes and they are requiring more and more,
the deal is he has to send in a copy of the 1099 form as well, it is not just for you,

just go to your accountant or (I am guessing library) and pick up the 1099 form and see what is required,

The tax laws on this have changed a great deal in the last 3 years, it's become a big deal to the IRS of late.

Anyone who remembers what they did 3 or more years ago or is doing it like they always did is out of the loop.

New laws, brush up on them.

There is a lot of detail as to how the rent is set up, renting for cash or crop sharing will change so many details of what & who & how.

Being in the farm program also requires a lot more paperwork at the FSA office, there is much to comply with there and documents that landowners need to be a part of these days.

Is what it is, these are govt things, so of course they will want the govt number - SSN.

---->Paul

I'm no tax accountant but one of the big problems renting out property is tax liability. I think this guy is just trying to pay his taxes. One thing we all need to consider is our tax liability when we rent out a piece of property.

I found this but think this is something to speak with a tax person or a lawyer. You might be able to get some OK answers if you deeply research this online.

How to Prepare 1099-MISC Forms - Preparing 1099-MISC for Contractors - Non-Employee Payments

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Moms don't look at things like normal people.
-----DD

You still DO NOT have to provide your full SSN. You can provide a truncated version. Read what the IRS says about it.

I will NOT provide my entire SSN to anyone.

Thank you so much for all of this input! I am working getting the info together. I just didn't realize that the other guy was ripping us off. He shorted us 800.00 a year compared to what this guy is paying us. He didn't want to get involved I guess and we never even gave it a thought about taxes or anything else. We just wanted the land taken care of so it didn't grow up into weeds and trees. There is so much we don't know. Thank you again!!!

All the more reason to it ALL in WRITTEN terms.
That way there will be no "misunderstandings" and you'll have the needed tax documentation for BOTH parties

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Yes I know, I asked the guy when he agreed to farm the land if he wanted anything in writing and he said no he didn't need it. Now I need it and will have to talk to him and tell him that I want an agreement in writing. I am not trying to cheat anyone and am glad I asked this question. My feeling is that he did get audited. When we agreed to this he did not say anything about a 1099 or needing a SS number. Of course I did not think anything of it because we were getting ripped off before and they never said a word. They obviously were not playing by the rules and either were we not knowing.

It was "supposed" to be done for a long time, but last year more laws were passed requiring them.

I Iease part of my farm, and went through the same thing with the paperwork

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Every acre of ground we farm for others is protected with a written lease outlining the length of the lease, the payment terms, rights of botht he landowner and tennant, and termination clauses.

The first sentence contains the landowner's name and SSN so I can follow the Federal Tax Laws.

All of our lease mimic the Iowa laws for farm rental: Possession of the land is from March 1 to Feb 28 and the termination day is September 1.

Jim

How was the previous tenant "ripping you off"?

He is asking this so that he can get a 1099 filled out for you. Which, is what he is suppossed to do. He is actually suppossed to get you to fill out a w-9 but it sounds like he is trying to save you the trouble.

No offense but I don't think I would ever recommend H & R Block complete a tax return. Just because they went to H & R block school doesn't prove they are qualified. Always look for a CPA, enrolled agent, or a tax preparer with an actual degree in accounting.