Accounting & Bookkeeping & Small Business Forum

[Richard Noot]

RobJ wrote: Richard Noot wrote: Regardless of the dollar amount a w9 needs to be obtained in addition to any 1099 requirement.
Straight from the Form W-9 itself:

"A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN)."

I don't believe Form W-9 is necessary until it becomes clear that you will have to file an information return. That said, some businesses choose to ask for a W-9 for any transaction with another business. I certainly wouldn't fill one out unless I knew it was necessary. I try to limit the number of people who have my social security/TIN numbers. It is necessary if you wish to avoid possible taxes and penalties if the IRS reclassifys your workers/vendors as employees and/or subject to backup withholding


The following is a partial quote from the form w9


How Do I Know When To Use • Ensure the information received is the information
Form W-9? sent, and document all occasions of user access that result in the submission;
Use Form W-9 to request the taxpayer identification • Make reasonably certain that the person accessing the
number (TIN) of a U.S. person (including a resident alien) system and submitting the form is the person identified
and to request certain certifications and claims for on Form W-9, the investment advisor, or the introducing
exemption. (See Purpose of Form on Form W-9.) broker;
Withholding agents may require signed Forms W-9 from • Provide the same information as the paper Form W-9;
U.S. exempt recipients to overcome any presumptions of • Be able to supply a hard copy of the electronic Form
foreign status. For federal purposes, a U.S. person W-9 if the Internal Revenue Service requests it; and
includes but is not limited to: • Require as the final entry in the submission an • An individual who is a U.S. citizen or U.S. resident electronic signature by the payee whose name is on
alien, Form W-9 that authenticates and verifies the submission. • A partnership, corporation, company, or association The electronic signature must be under penalties of
created or organized in the United States or under the perjury and the perjury statement must contain the
laws of the United States, language of the paper Form W-9.
• Any estate (other than a foreign estate), or
• A domestic trust (as defined in Regulations section