Blog
Beware of the IRS’s W-9 annual solicitation requirements
The IRS requires that companies obtain a vendor’s TIN (Taxpayer Identification Number) before making a payment to them. The TIN is normally either a vendor’s Employer Identification Number or Social Security Number. Although using a W-9 form is typically not mandated by the IRS outside of interest, dividend, and broker payments, asking vendors to complete a W-9 form is the standard practice companies use to obtain a vendor’s TIN. If a vendor refuses or neglects to provide a TIN, the company is
Categories
What is the difference between an individual and a sole proprietor?
Definition of a sole proprietor The IRS defines a sole proprietor as “someone who owns an unincorporated business by himself or herself.” It is the
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 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