Question W9 forms

[signgirl71]

I have a new accountant and she just sent me a W9 form and asked me to send it to two vendors I have used - Signs365 and Zoo Printing saying I need them to fill it out and send it back so she can send them their 1099s. The previous accountant that was used never asked for that. Is this correct? Is it something you guys/gals do? Just curious before I send them out (and of course try to find an email since alot of them only have "request a ticket" forms)
Chris

 

[dypinc]

I have my doubts that they are individuals or LLCs. Does your accountant know this?

 

[FASTSIGNS]

Not needed. Tell your accountant no.

 

[Goatshaver]

I've never been asked to do that, and my accountant is a former IRS agent.

 

[Gettin'By]

I have my doubts about that accountant...

 

[Solventinkjet]

We get W9 requests from larger companies/customers and it's usually just to have our EIN on record just in case. I think they do it to verify your status so they don't get in trouble during tax season. Since we're an S-corp, they just file it away but if we were an LLC they might need to send a 1099. This way they have it on file either way.

 

[ChaseO]

Did you tell your accountant they are a wholesale company and not a subcontractor? You don't need to send them anything.

 

[Johnny Best]

Only time you send a W9 is to a customer who paid you more than $600 for the year and that generates a 1099 that you receive to put with your taxes. It is the way the IRS keeps up with how much money you made for the year.
But, you do not send a W9 to S365. Your accountant is wrong on that.

 

[netsol]

my consulting business services a couple charities, who would send me a 1099 if i sold them a paper clip for $0.03

and yes, they ask me to fill out a 1099 every year

have you considered you chose poorly when it came time to choose the new accountant?

 

[chrisphilipps]

Our accounting firm is doing the same thing with us this year. Apparently the IRS has a new requirement that if you made any payments to any individual or any unincorporated business of over $600 then a 1099 form needs to be issued and filed with the IRS. From what our accountant tells us the best way for them to figure out if a 1099 is required or not is to have the vendor fill out and send a W9 form.

According to the IRS website an Unincorporated Business is defined as below.

What Are Unincorporated Businesses?​

Unincorporated businesses are sole proprietorships (owned by a single individual) and partnerships (owned by two or more individuals). In a business partnership, each owner or partner can make business decisions and share any profits. Each owner or partner is responsible for paying income tax and is liable for the debts and activities of the partnership. The type of entity or partnership is reported on Form 1065, Schedule B, by checking one of the following choices: a. domestic general partnership, b. domestic limited partnership, c. domestic limited liability company, d. domestic limited liability partnership, e. foreign partnership, or f. other.

 

[Texas_Signmaker]

They further say if you paid them by check or cash. Credit card would be reported on a 1099k. I send 1099s to all the sub installers I've used and paid check / ACH.

 

[Stacey K]

All this would be reported via cc transaction. I just send my accountant totals for the tax categories so he would not even know how much money I spend at Signs365.

 

[victor bogdanov]

All this would be reported via cc transaction. I just send my accountant totals for the tax categories so he would not even know how much money I spend at Signs365.

One benefit of using credit cards, makes accounting easier. I prefer to pay with cc and prefer to accept cc payments = automated accounting.

 

[SGC]

Yeah no, this is a general inventory/manufacturing expense and doesn’t require a 1099.

Also, the $600 or whatever law was delayed and is no longer effecting the 2023 tax year.

 

[WildWestDesigns]

Typically there are minimums as to when it's determined that one must get/give that info. It doesn't necessarily mean that one can't do that even if below the minimum. Different jurisdictions may also have different limits on the books as well, so even that isn't going to be the same across the board.

I think there are provisions that they can submit the form even if all that information isn't totally known. I was usually the contractor, so I used to get those quite a bit from a few customers.