What if a vendor will not provide a W-9?

Payments to a payee who does not give you a TIN may be subject to backup withholding. Publication 1099 sets out the rules and the current rate.

Do I need W-9s from corporations?

It is good practice. The W-9 is how you know the vendor is a corporation, and law firms are reported even when incorporated.

Checklist · Vendor W-9s

1099 vendor W-9 collection checklist

Most 1099 problems in January start with a missing or wrong W-9 in June. Use this checklist when you onboard a vendor and again before year end.

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Why collect W-9s even below the threshold

You often do not know in March whether a vendor will cross the threshold by December. Collecting the W-9 up front costs nothing and avoids asking a vendor you have stopped working with for their tax ID in January.

Where HelloBooks fits

HelloBooks only marks a vendor 1099-eligible once a W-9 is on file, tracks payments against the threshold, and prepares federal and state 1099-NEC and 1099-MISC files in Combined Federal/State Filing format. Direct e-file to the IRS is not enabled yet; you or your filing agent submit the prepared files.

FAQ

Frequently asked questions

What if a vendor will not provide a W-9?: Payments to a payee who does not give you a TIN may be subject to backup withholding. Publication 1099 sets out the rules and the current rate.
Do I need W-9s from corporations?: It is good practice. The W-9 is how you know the vendor is a corporation, and law firms are reported even when incorporated.