Easement Purchase and Payee Not Providing Full TIN
I found on page 2 of the instructions of the W-9 it states under the section "What is backup withholding?" that real estate transactions are not subject to backup withholding. With that in mind, what do I report for a payee providing less than their full TIN?
Easement Purchase and Payee Refuses to Provide Full TIN: What do we do?
We are purchasing an Easement from an individual who is refusing to provide more than the last 4 digits of their social security number. Since this is a real estate transaction, all amounts are reportable. I am not quite sure what to do in this situation.
1. Withhold a percentage of the payment?
2. Obtain an explanation in writing?
3. Accept the incomplete number and request another W-9 when a B Notice is sent?
Combination of the above?
Vendor Provided W-9 with EIN that Does not Match IRS Records: What to do?
We have a vendor that does not have a W-9, however, they provided an IRS letter noting that an EIN number was assigned. We tried to match the EIN provided and it does not match. Our standard procedure is to match to the IRS.
Form W-9 Certification Requirements and Bank Deposit Interest?
I am a Bank Officer. I recently received the 2011 Form 1099 Compliance Guide and the Non-Resident Alient Reporting Supplement. On pg. 13 of the supplement, it states that a form W9 must be certified for payments of bank deposit interest. Can I assume this means that if the individual does not have a SSN (as in foreign persons), then they are not eligible to be paid interest? The supplement also states to claim treaty benefits a SSN is required. All of this is so confusing.
LLC Vendor but Payment Made to Incorporated Finance Company: Who Provides the W-9?
The vendor is ABC LLC and the payment needs to go to Finance company INC.
Which company should we be getting the W-9 form from?
The answer to this question typically lies in determining who you have the contract with, regarding performance of services. Moreover, we also need to assess what form and shape the LLC has taken in it's organization versus that of the parent corporation. Sounds confusing, but there is an answer.
Science Fair Prize Awarded to U.S. High School Student Dependent of a Resident Alien
We have awarded a science fair prize of $250 to a high school student who is attending high school in the US while her father teaches/works/researches at a local university. The father files as a resident alien in the US.
Do we need to report or withhold on the payment to the daughter? Do we need to get documentation for the daughter and/or the father? What other information do I need to obtain to consider whether there is a filing or withholding requirement for this prize?
We will answer your questions in the order asked and as follows:
Is LTD equivalent or similar to LLC?
One of our companies as sent us a W-9:
Name is ---------- LTD
They have marked as Corp and Exempt from Withholding.
I have matched with the IRS and the name and number matches.
I am under the impression that LTD is similar to LLC - and should be reportable.
The "eyeball test" has been tripping up information reporters for as long as it's been around. And for good reason. There is quite a bit of additional information hidden in the fine print of the regulation that makes the use of the "eyeball test" as not nearly simple as one would initially believe.
LLC Claiming "C" Corporation Tax Exemption But No Proof: What to do?
We received our 2010 1099-MISC back from a vendor (LLC) with a letter stating that they are a corporation and should not had received a 1099. Included with the letter was a completed W-9. They had checked the Limited liability company box and entered the tax classification as C. I requested a copy of Form 8832 to confirm their corporate status. I then received an email that they do not keep the Form 8832 on file, it is located in their corporate office. Again, reassuring me that they are a corporation.
I have two options I believe...I can either rely on the W-9 that they provided to us showing that they are a corporation or go ahead and report to the IRS. If I decide not to report and attach the email string to the vendor record, will this suffice for IRS purposes?
Documentation is of course everything here. And when you have a payee who is throwing up roadblocks in this regard it only complicates matters. However, there are a number of steps you can take.
Possible Exempt Payee but Not Sure: What Should I Ask For?
A January 2011 W-9 was provided for a local church. The box that was checked for Federal Tax is Other and typed in the word "church". Can you tell me if this is correct or if I should request more information.
Trying to Get W-9 From Payee: What Can We Do?
I understand that a W-9 is needed for providing a clients ssn/tin/ein to us but is there an IRS Code that states this specifically? We have a client that doesn't have an interest bearing account with us but should he surrender his policy at any time there will be taxable gain. And my understanding is that we must withholding federal taxes if a ssn is not furnished. We have been writing for months if not years to try and get a W-9 completed and an ssn for tax purposes should he cancel his policy with us. He is now asking for that IRS code. I know the code 26-3406 (a) (1) but that pertains to backup withholding....is there another code that I may referance?
The Internal Revenue Code (IRC) requires that payors of certain types of payments issue information returns (i.e. Forms 1099). The most important code sections that you can use as authority for this particular payee are as follows: