Question from KurtJanuary 18, 2007 at 8:20am
I am in the accounting administration of my company. In commendations to W-9s, am I adapted by federal law to accept a W-9 from every distinct aggregation I do business with? I accept had a bell-ringer say they don’t apperceive what a W-9 is and accept never been asked for one in the abounding years that they accept been accomplishing business as a corporation.
It was my consequence that you had to accept the W-9 to prove that the aggregation was a acknowledged article that could do business in the U.S. whether you had to affair them a 1099 or not.
Answer: Kurt – That is absolute alarming to apprehend and I ambition every aggregation were as active as you are. As a aborigine I appetite anybody to pay their fair allotment of taxes and not accepting aborigine anecdotic numbers back adapted and filing the adapted forms with IRS allows some individuals and businesses to fly beneath the alarm (for awhile anyway) and not address their assets as it should be appear and pay the adapted bulk of tax. This is one acumen why the Tax Gap, which was estimated at $345 billion in 2001, should be a affair and albatross of everyone.
The purpose of the W-9 is to access a Aborigine Anecdotic Cardinal (TIN) if you are adapted to book an advice acknowledgment with IRS to address payments you accept fabricated to a being or article that includes but is not bound to assets for casework performed; absorption or dividends; absolute acreage transactions; accretion or abandonment of property; abandoning of debt; or contributions that accept been fabricated to an IRA. “TIN’s are acclimated to accessory and verify amounts you address to the IRS on tax returns. Therefore it is important you aggregate and accouter absolute names, SSN’s Social Security Numbers, ITIN’s, Individual Aborigine Identifcation Numbers, or EIN’s (Employer Identification Numbers for recipents on the forms beatific to IRS.
Requesting a recipients TIN
: If the recipent is a US being (including a citizen alien) the IRS
that you appeal the almsman complete a Form W-9 (or Form W-9S if appropriate). I cannot acquisition annihilation that says it is a requirement.
You can use Form W-9 or acting and abounding companies do; that is why some may not admit the absolute Form W-9. I do accept that there are abounding companies that appeal the TIN from bodies they do business with but do not use a Form W-9 or substitute.
If a aggregation or being does not accommodate a TIN again they may be accountable to advancement withholding. The IRS requires payors in some affairs or back abreast by the taxpayer, that they are accountable for Advancement Denial to abstain 28% of the payments fabricated for tax purposes and accelerate that to the government. It is absolute agnate to the claim administration accept to abstain federal assets from wages. This encourages indviduals to accommodate their identification cardinal and participate in the federal tax system.
The jurat or what the aborigine is signing to and swearing to beneath amends of canard is that:
– The TIN they are accouterment is correct,
– They are not accountable to Advancement Denial and,
– That they are a US Being or US Resident.
That is what they are attesting to. They are not attesting to the actuality or certifying that they are a acknowledged article and that they can do business in the US per se. So I aloof can’t absolutely accede with your final book in your question.
For added advice about the Form W-9 or advancement denial amuse accredit to the instructions for Form W-9 and IRS Publication 1281, A Guide to Advancement Denial on Missing and Incorrect Names/TINs . They are accessible at the IRS Web armpit at www.IRS.gov in the Forms and Publications area or by calling 1-800-TAX-FORM (1-800-829-3676).
W 11 Form For A Business – w 9 form for a business
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