Quote Originally Posted by Casper View Post
This subject is not to be taken lightly. One must research the legal terms and be cognizant of the contracts and agency you have entered in to before that question could be answered. As well as your status as either within the United States, or without the United States.

I can only speak for myself, and my cognizance, but I do not have any “income” that is effectively connected to a “trade or business” (public office within the District of Columbia).
The question then is, what is the source of authority to deem one's earnings -- if one is one of the People without the District of Columbia -- as effectively connected to a “trade or business”? That authority can only come from one source: you. Via completing and signing a "W-9" or similar form, thereby certifying "U.S. person", "U.S. citizen", and "individual", it appears the "effectively connected to a 'trade or business'" nexus is formed.

But what happens if a payor deems one's payment "effectively connected to a 'trade or business'" without a W-9 or your consent? What if additionally you told the payor, "Do not send me '1099' Forms" and they ignore you and do it anyway? Would this not constitute fraud? Would you all agree that any and all liabilities created by the fraudulent issuance of 1099's would be 100% the payor's liability?