Comments on: Ask the taxgirl: Can I refuse to complete a form W-9?

By: Kelly

Kelly — Mon, 23 Mar 2009 12:27:43 +0000

I agree that there are many “tax dodgers” who won’t supply their tax ID number because they hope to avoid reporting.

But I think what this taxpayer is complaining about – and it’s something that many of my corporate clients have increasing been concerned about – is the failure to release payment even when forms W-9 are not required. There is nothing in this fact pattern that leads me to believe that a form 1099 would have been issued (esp to a corporate taxpayer). In that instance, the payor should have paid up without making noise.

By: Steve Welsch

Steve Welsch — Sat, 21 Mar 2009 18:29:35 +0000

I agree with Mary Kay. We usually demand that we get their tax id also. We are just a bit softer, however. If the payment that is less than $600.00, we will pay them, but tell them we will not do any more business with them unless we get their tax id number. Honest Americans who file their tax returns should not care if it is reported to the IRS, as they will report it as income. My feeling is that anyone who is afraid to fill out the w-9 or won’t supply their tax id number probably isn’t reporting the income. Then, if we get audited, we get penalized for either not getting a tax id number, or not reporting the income on a 1099. Not worth it to me. We can usually find someone else to do the job for us.

By: SOB Business Cafe 03-20-09 - Liz Strauss at Successful Blog - Thinking, writing, business ideas … You’re only a stranger once.

Fri, 20 Mar 2009 16:58:41 +0000

[...] Ask the taxgirl: Can I refuse to complete a form W-9? [...]

By: Mary Kay Foss

Mary Kay Foss — Fri, 20 Mar 2009 04:59:26 +0000

Some financial institutions send out W-9 forms periodically to make sure that they have the correct SSN or EIN for a customer. I’ve had clients throw them away because the SSN listed is correct. The next thing you know the institution is collecting federal backup withholding – by taking money from the dividends and interest they earn with the institution.

You shouldn’t ignore those W-9 forms. I don’t understand why the CPA advised this person not to complete them.