Streamline Your Form W-9 Online Process and 1099 Filing with TaxBandits!
Why Choose TaxBandits to Request Form W-9 Online?
Filing 1099 returns with incorrect TINs can lead to hefty penalties. TaxBandits helps you avoid this by performing TIN Matching on W-9s obtained.
Seamless Data Import
TaxBandits allows you to import vendor details directly from Xero, QuickBooks, and ZohoBooks to request W-9s easily.
Once your vendors complete and e-sign their electronic W-9 forms, TaxBandits will notify you instantly via email.
TaxBandits incorporates robust security measures to protect the PII information obtained through W-9s, such as SSN, email, etc.
Ready to Request W-9?
Frequently Asked Questions about Form W-9
What is Form W-9?
Form W-9 is an IRS form used by businesses to obtain Name, Address, and Taxpayer Identification Number (TIN) from contractors or vendors.
The information obtained through W-9 forms will be used to e-file the applicable 1099 forms for reporting payments made to the respective vendors.
Check out https://www.taxbandits.com/what-is-form-w9/ to learn more about
What information will the vendors provide on their Form W-9 Online?
Here are the details that the vendors will provide on their W-9 Forms:
- Name, Business, Federal Tax Classification
- Taxpayer Identification Number (TIN) - Eg: SSN, EIN
- Subjection to Backup Withholding
- Exemption codes for FATCA Reporting, if any
When should you request W-9 Online?
If you are a business that is required to make payments (generally, more than $600) to any individual or entities regarding any services rendered, such as independent contractors, freelancers, or consultants, you must request Form W-9 from the respective payees.
By obtaining a W-9 form, you can ensure that you have the necessary information to accurately file 1099 forms with the IRS at the end of the year.
How to Complete Form W-9 Online with TaxBandits?
Follow these simple steps to request Form W-9 from your vendor:
- Step 1: Add vendor details either manually or import from Xero
- Step 2: Request the vendor via email to complete Form W-9 Online
- Step 3: The vendor will complete and e-sign their W-9, and you’ll be notified
- Step 4: TaxBandits will validate the TINs obtained through W-9s
- Step 5: E-file 1099 forms for your vendors using the W-9 information and distribute copies
What is backup withholding?
The payments you make to the vendors will be subject to a backup withholding of 24% ifThe payments you make to the vendors will be subject to a backup withholding of 24% if,
- The vendor fails to furnish TIN
- The vendor fails to certify the TIN
- The IRS indicates that the vendor has furnished an incorrect TIN
- The IRS informs that the vendor is subject to backup withholding since they didn’t report all the interest and dividends on their tax return
- The vendor fails to certify that they aren’t subjected to backup withholding under the above 4 conditions
What type of payments are subject to backup withholding?
Here are the payment types that are subject to backup withholding
- Tax-exempt interest
- Broker and barter exchange transactions
- Nonemployee pay
- Payments made in settlement of payment card
- Third-party network transactions
- Certain payments from fishing boat operators
What are the penalties if the vendors fail to furnish the
- TIN Mismatch: A penalty of $50 will be imposed on contractors or vendors if they fail to provide furnish the correct TIN unless an acceptable reason is stated.
- Civil Penalty: If a vendor provides false information with respect to withholding, they will be subject to a $500 penalty.
For more details, visit irs.gov.
Success Starts with TaxBandits!
Outstanding software! I have been collecting paper copies of W-9 previously and tried the online process for the first time. It was extremely easy and smooth.
The software is super easy to use and helped me collect the W-9s from my contractors in a short amount of time.
Loved the TIN matching service! Now, I don’t have to worry about rejections due to incorrect TINs.