“No I won’t back down. You can stand me up at the gates of hell but I won’t back down.” -Tom Petty
This song gets regular play on our “Ilderton Family Playlist”. I always think of @alliejeanjean and Steve Caulk when I hear it.
There are many things in life we should not back down from. In the bookkeeping world, we need to not back down with those W-9 requests! January is 1099 month and business owners need to have all their subcontractors W-9 forms up to date. What if a subcontractor won’t give you a W-9 form?
The first thing it to make the request multiple times (3 at least). Stay on them like tie dye on a hippie! The requests need to made via email or in some other version of writing that can be saved as back up.
If the recipient still will not provide a W-9 form, personally I would stop working with them! However, if that is not a possibility, the IRS requires that the business owner begins backup withholding of 24% and reporting those on Form 945. You should provide backup holdings until you are provided a W-9 or at least a TIN.
When it comes time for reporting, if you do not provide a 1099 to everyone who should receive one you could receive penalties ranging from $50 to $270 per unfiled 1099.
All the completed W-9 forms you do receive should be kept safe! They have sensitive information on them and need to be protected.
Many contractors and vendors are just busy and they aren’t trying to scam the IRS and not report income. Be persistent and keep asking for those W-9 forms! It’s easier than the 24% withholding and cheaper than paying more to the IRS!
#ildertonfamilyplaylist #1099vendors #W9form #taxtime #taxreporting #knowyourbusiness #tiedyeonahippe