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W-9s furnishe to customers...why?

S

Steve C.

New Member
I have quit a few regular sign customers who request W-9 forms and I am happy
to send it whenever they are ask for. But I have a customer who bought a
font package and wants a W-9. What? If I sent all my font customers a W-9
it would take 3 days. Just sounds stupid to me. Do you get a W-9 for everything
you purchase? What should I tell them?
 
Gino

Gino

Premium Subscriber
Does this answer it ??


Some people have received a request for Form W-9 from landlords and other people or businesses. Form W-9 is used to officially ask a person or business to provide their name, address, and taxpayer identification number so that the requesting party can properly issue tax documents to the IRS. In general, the types of businesses that request Form W-9 is any business that pays you interest, dividends, non-employee compensation, and certain other types of reportable income. If you receive a W-9 from an unlikely source, ask why they need the W-9 form and how it will be used.
 
S

Steve C.

New Member
$369. is the cost of my complete package. In ten years of selling fonts, I have
never be asked for a w-9. Frankly, I can't see why someone purchasing signs
would need one. Amortize it as equipment or deduct it as advertizing expence.
 
CheapVehicleWrap

CheapVehicleWrap

New Member
VERY googable:

"The minimum amount to report is $600. If, in one calendar year, you pay a freelancer or subcontractor anything under $600, you do not need them to fill out the Form W-9. However, if you pay someone $600 or more, you will need to report that the following year."
 
ucmj22

ucmj22

New Member
It might be a carry over from what was supposed to get put in to affect this year, but was repealed a couple of months ago. you guys might remember that one of the ways the Gov was going to raise enough funds to make obama care viable was to require all businesses to issue 1099s to any entity it did business with for over $600. if you bought $600 worth of coffee from a particular grocery store...1099, if you bought $600 worth of paper from staples... 1099, if you bought $600 worth of vinyl from a supplier...1099. somehow this crazy web of paperwork was supposed to make sure that the proper amount of income for all businesses was reported to the government, there by increasing revenues to the Gov. They eventually came to their senses in September, I think, and repealed that portion of the healthcare bill, But any business or CPAs who didnt catch that last part, might still be scrambling to get 1099s together. this is the only reason I can think of why you might be seeing an influx of W-9 requests.
 
Pat Whatley

Pat Whatley

New Member
My old accountant would send a W-9 request to everyone I spent money with that I had an address for whether I needed one from them or not. She said it was easier and safer. I never looked into how many actually got sent in.

I'm willing to bet that's what's going on.
 
visual800

visual800

Active Member
this year alone I have sent out more damn W9 to get jobs its ridiculous! I cannot imagine how its going to be to do business in the next 10 years.
 
S

Steve C.

New Member
When I told them they didn't need one for software, I got this response:

We have to set you up as a vendor in our system because we made a purchase which requires us to get a W9 for tax reasons. If you are incorporated, then there’s not an issue but we still have to have this on file for auditing reasons. Usually the info needed is on the website & I would just print a copy for our records, however, I didn’t see it on your site. It does explain it on the form & the purpose.
 
visual800

visual800

Active Member
one thing that does tick me off about W9 is that we always do our taxes in jan and feb. I dont care if I owe or break even I always do them early and get it done....damn w9s will come in all that way up to april...glad Im not waiting on those to complete my returns
 
WeekendDirectionals

WeekendDirectionals

New Member
We get at least 2 w-9 requests a week so we just keep a completed one by the fax machine. In January we got a lot even from companies where we gave them one a year ago. In the good news deparment we've never gotten a 1099 where we had not gotten the income.

We install for a lot of national or public companies so we get a fair amount of insurance cert requests too. If our competitors didn't want to cooperate with them to become an approved vendor and get their business that's great.

We're grateful for the work.
 
cdiesel

cdiesel

New Member
The only time W9's would ever be an issue is if you're reporting less gross receipts than what is being reported to the IRS by people issuing you 1099's. That is HIGHLY unlikely, as a very small percentage of customers use W9's and 1099's.

Most of the companies we do install work for request W9's. This isn't even so much to issue 1099 (as much of them don't), but it's to establish that we are in fact subcontractors and not employees so they don't have to withhold taxes. Like your client said, as long as you're a corp it's a moot point. It just looks weird to the IRS when companies are paying individuals money and not taking taxes out..
 
binki

binki

New Member
They should get the W-p BEFORE they buy from you, not after. Besides, it is too late for 2011, they have missed the filing deadline if they want to issue a 1099.
 
TyrantDesigner

TyrantDesigner

Art! Hot and fresh.
I would charge them a processing fee, just state that since they do not meet the minimum $600 for the form, they will have to pay a nominal fee to process the information for them.

And also, considering the fonts are a product not a service provided exclusively to that company, I don't even see why they need the independant contractor form since you're not being hired by them only selling them a commodity. I guess I just don't understand the logic with it.
 
OldPaint

OldPaint

New Member
under the old IRS laws IF...........you was paid more the $600 from 1 company/corporation/business THEN AND ONLY THEN would they send me a W-9 so that i had to claim that money as wages PAID from them as a CONTRACT LABORER. more to COVER THEIR BUTTS then mine. so monies paid out by them would be fully accounted for and for what it was paid. people who get EXPENSE ACCOUNTS MONEY will also receive a W-9 SO YOU HAVE TO PAY INCOME TAX on that amount. this new thing was a big flap at 1st, because there was no begining amount that you needed to start sending out W-9, to anyone you sold something to. now that was stupid.
they tried some crap like this in florida with a SERVICE TAX, everybody was up in arms about it and the big mistake they made when saying who had to pay it, the crafters of the law INCLUDED LAWYERS..........and the LAWYERS SHOT THIS FIASCO DOWN QUICKLY)))))
 
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