Question Client Requesting I Fill Out W-9 Form

[Aspect]

Greetings,

I (sole proprietor in retail business) recently had a request to do two custom frames for a client (which is another business - sole proprietor), and they want me to ship the completed work out of state to a third party. Once they agreed to use my company, they requested that I fill out a W-9 form and return it to them (W-9 is the form given to independent contractors by a business to request the Taxpayer ID # and Certification - I guess. Still pretty unclear about the form).

I'm fairly new to the game, but have never gotten this request before, so I'm not sure what I should do.

If I am supposed to fill out the W-9 form for them, what info do I give out to them? Not even sure what they want or need from me. Any advice would be greatly appreciated. Thanks!

 

[JFeig]

If the client is paying for your services, it is appropriate. If the "third party" is paying, it is not appropriate.

 

[Jeff Rodier]

Certain businesses need them so they can send you and the IRS a 1099 Form. It all depends on their accounting so I have to fill them out for the following business/Entities I do work for:

Banks
County School Systems
Colleges
Interior Designers
Restaurant Chains
Government Entities
Etc.

There is a wide variety of entities that will require them from you.

 

[David Waldmann]

There is a wide variety of entities that will require them from you.

Every entity is required by the IRS to request a W9 if you are expecting to pay more than $600 for labor or services, or more than $5000 in direct sales, in a calendar year. If you then DO pay more than $600/$5000 you are also required to send a 1099 to the entity AND the IRS at the end of the year.

The caveat is that while it's not required to obtain a W9 from a corporation, you don't know that they are a corporation until you send them the request (unless it's a large, well-known one). Some surprisingly large companies are not corporations...

Bottom line is, if someone requests a W9, just give it to them.

(note: if you are a sole proprietor with only a SSN, get a TIN so you don't need to provide your SSN on W9s)

 

[Aspect]

Thanks JFeig and Jeff

Bottom line is, if someone requests a W9, just give it to them.

Got it. Thanks!

 

[calimbo]

It requires clarification that one who pays you should request the W9. If you need a template, you can grab it for free from the IRS website, or get the fillable electronically one for a fee here: https://w9.pdffiller.com/ all you need to fill out it with is your TIN

 

[David Waldmann]

The current IRS one is fillable. For free...

https://www.irs.gov/pub/irs-pdf/fw9.pdf

 

[IFGL]

Every entity is required by the IRS to request a W9 if you are expecting to pay more than $600 for labor or services, or more than $5000 in direct sales, in a calendar year. If you then DO pay more than $600/$5000 you are also required to send a 1099 to the entity AND the IRS at the end of the year.

The caveat is that while it's not required to obtain a W9 from a corporation, you don't know that they are a corporation until you send them the request (unless it's a large, well-known one). Some surprisingly large companies are not corporations...

Bottom line is, if someone requests a W9, just give it to them.

(note: if you are a sole proprietor with only a SSN, get a TIN so you don't need to provide your SSN on W9s)

Just curious, is that only if the transaction is from out of the state or is that all transactions that meet these criteria?

 

[Pat Murphey]

Nothing to do with States, it's a Federal rule. States might piggyback on the information for State income taxes.

 

[David Waldmann]

Just curious, is that only if the transaction is from out of the state or is that all transactions that meet these criteria?

In state too. For instance the guy that plows our driveway is an LLC, so we need to send him (and the IRS) a 1099 every year.

 

[IFGL]

Thank you!