I did some contract work back in April of 2011. The work was done via online and I was never asked to fill out any tax forms of any kind. After the work was done they sent me a payment via check and that was the last I heard from that company. Yesterday I received an email from them stating they had no W9 on file from me and requested that I fill it out and send it back to them so they can issue a 1099 for their tax reporting. Shouldn't they have asked for this before now, like way back when they first hired me for the contract work? The contract work was for less than 2,000. what happens if I choose not to send them back the W9 and simply ignore their email? I already sent in my taxes and had completely forgotten about that income. If I failed to respond, can they submit a 1099 from me when they don't have my W9, and can the IRS come after me, or is it the mistake on the part of the contract firm?

“Shouldn't they have asked for this before now, like way back when they first hired me for the contract work?”---->Correct; your payer had to request a W-9 fromyou, an IC, prior to paying you. Ideally the form needs to be obtained at the same time that the contract is signed for the service that was being provided;however, I guess many ERs do not know it. You ALSO need to let you r ER obtain IRS Form W-9 from you that he compensates for items such as independent contract services.The form provides critical information so your ER can make all necessary reports to the IRS. The ER legally needs to have all tax forms in the mail by January 31,2012.So fill W9 out and send it back to them so they can issue you a 1099 for their tax reporting with the IRS.
“ The contract work was for less than 2,000. what happens if I choose not to send them back the W9 and simply ignore their email?”----> The W9 form gets reported to the IRS to help keep track of the taxes that you actually owe to the IRS. You, as an IC, don’t usually have anything withheld on their checks, like regular W2 EEs do. If you don't give yur ER, the payer, your taxpayer identification number on W9, then you can be subject to backup withholding on money you earn as an independent contractor if your fees are $600 or more; the backup withholding tax rate is 28/30%.I guess. So, basically the payer ask you to swear that you’re not subject to backup w/h by completing the form W-9 .Your W9 is used to certify under penalties of perjury that your social security number is correct and that you are not subject to backup withholding.
“ I already sent in my taxes and had completely forgotten about that income. If I failed to respond, can they submit a 1099 from me when they don't have my W9, and can the IRS come after me, or is it the mistake on the part of the contract firm?”----> You should have a record of what you got paid, you had to file using that estimate. As you didn’t report the income on your return, you need to file your amended return. He's going to issue you a 1099MISC on which you will have to report on sch C and SE and take care of your own taxes,SECA tax, I mean. As you can see, he is not handling any of the tax of your employment. So, you need to send him W9 as soon as possible to avoid 28%/30% backup w/h. on $2,000 and need to file your amended return. Since you discovered an error after your return has been mailed, you may need to amend your return. The service center may correct errors in math on a return and may accept returns with certain forms or schedules left out. In these instances, do not amend your return! However, do file your amended return; as your income is incorrect(understated). As said previously, your ER needs to submit this information to the IRS when filing year-end tax return to verify income paid to you. He will also send both 1096/1099 to the IRS to report $2,000 that he paid to you. UNLESS you file your amended return to report the UNREPORTED $2,000 1099 income, you ‘d be subject to underpayment of estimated tax penalty/interest.I guess you ALSO need to file both fed and state amended returns.