How do I handle the taxs in this situation?

Question

I share a payment with someone in a legal agreement.The agreement states that the payment is 'on an equal basis' 50% to each party any income from the company. The payment comes to me and I deduct the taxes and divide the payment by 2 and send it. The taxes are all on my social security #. Is this the fair way to do it? the other party will not give me a social security # to send a 1099 to the IRS. Or should I pay all of the taxes for the other party to the payment?

Answer 1

sounds like they want the income, but none of the hassles of a real business.  you best bet would be to go to a tax attorney.  You can still send it in under their name, with no social security #, but the feds will be hollering.  You need to give them a form W-9:

http://www.irs.gov/

  Keep records of when you gave it to them, as they are required by law to give you the info. or will be penalized by the IRS.

Answer 2

Base it on gross.  Divide the gross by two, forward the half to your partner and then pay your taxes on your half.