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Avoid the biggest mistakes made on Form W-9

Top 5 mistakes made on W-9 forms

I’ve been a CPA for over 20 years now and have seen mistakes on W-9 forms every one of those years. It seems like a simple form at first glance, but the W-9 form itself has 6 pages of instructions with almost 6,000 words. Behind those condensed instructions on the W-9 form is a massive set of IRS tax code regulations. Helping vendors and independent contractors create a correct and complete W-9 form is one of the reasons we started W9manager. #5

What names should LLCs use when completing Form W-9

In the instructions section of IRS Form W-9 there is a “Specific Instructions” paragraph that provides guidance to LLCs with more than one member. Line 1 is

What tax classification should an LLC select?

LLC’s fall into 4 general categories for W-9 purposes. Single member LLC – In this case the LLC is considered a disregarded entity and one should look

IRS differentiation between an employee and an independent contractor

The determination can be complex and depends on the facts and circumstances of each case. The determination is based on whether the person for whom

What is the difference between a Form W-2 and a Form 1099-MISC?

Although both of these forms are called information returns, they serve different functions. Employers use Form W-2, Wage and Tax Statement, to: Report wages, tips,

What is a disregarded entity?

Here is the IRS definition of a disregarded entity from the “Specific Instructions” section of Form W-9: Disregarded entity. For U.S. federal tax purposes, an

Are electronic W-9s legal?

Yes, electronic W-9s are legal as long as IRS guidelines are followed. Here is what the IRS says about the electronic submission of Forms W-9

Are payments to corporations reportable on a 1099-MISC form?

The Short Answer Most payments to corporations are NOT required to be reported on Form 1099-MISC. Corporations include both S and C corporations as well

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