W-9 form...WWYD?

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mikemerlin said:
The rule states $600 or more ,asks for my SS# and I have never received one of these before which is why I asked. No need to get your panties in a bunch
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Correction, $600 is the trigger amount for the mandatory reporting requirement. However, anyone that issues you a check for payment of services, in any amount from 1 cent to $599.00 may, and some do.
 
We automatically send a W-9 to every new client; after all, they need it for bookkeeping. Nothing makes their job easier than giving them all the paperwork right up front with the contract--W-9, insurance, etc. Also makes them a lot more eager to issue a check to the DJ...who no longer appears just another putz and instead looks like someone in business.
 
Ed Price said:
The reason that you got this request is that due to the new health care rules passed by the Obama administration requires all businesses spending $500 dollars or more with a vendor. Must file a tax form for that expenditure.

It is one of the issues that is hurting small businesses. This rule took effect Jan 1 this year. I have and would also in this case fill out the form and return it. It is a necessary part of doing business.
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That is incorrect.

As far as I can remember as far back as the 80s, each time I did business with a corporation, whether it was my DJ or Art Consulting Business, I was requested to submit information if said company was going to pay me money. It is an IRS ruling/requirement that shows where moneys have been paid out by a corporation. For Internal or External Audits it is a welcome necessity.
If companies did not do this it will be easy to commit fraud within the company. This is nothing new. Misinformation is a %^$%%:trimad:
 
SoftJock Rick said:
Also, because of the new stipulations coming into play (depending on whether the law gets repealed) -- every business will have to start 1099'ing everyone else over $600 per year...

Many businesses are already gearing up for it, even though we're hoping at least that part of the law gets bounced...
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I have my tax appointment on Monday. My big thing is to ask about the whole getting your clients to give you a 1099 on all payments over $600. Now do we have to request it or do they have to know about this.

I had asked him about this when I first heard it. Don't remember exactly what he said so that is one of my biggest Q's for him.

EDIT> just went back and found the Email. This is his response last May.

Thanks for forwarding the article Karl. I have seen bits and pieces of this bill as it went through legislation. It still has a chance to be repealed as it will not be implemented until 2012. But as of now, yes your clients will be required to issue you a 1099 if over $600 of services provided.
I guess all we can do before then is just stay tuned.
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ahoustondj said:
That is incorrect.

As far as I can remember as far back as the 80s, each time I did business with a corporation, whether it was my DJ or Art Consulting Business, I was requested to submit information if said company was going to pay me money. It is an IRS ruling/requirement that shows where moneys have been paid out by a corporation. For Internal or External Audits it is a welcome necessity.
If companies did not do this it will be easy to commit fraud within the company. This is nothing new. Misinformation is a %^$%%:trimad:
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No, you are incorrect!

Read the law, and see what changes came into play with Obamacare.

Here's a quicky read, if you care to take the time, but don't want to read the law...

http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/
 
SoftJock Rick said:
No, you are incorrect!

Read the law, and see what changes came into play with Obamacare.

Here's a quicky read, if you care to take the time, but don't want to read the law...

http://money.cnn.com/2010/05/05/smallbusiness/1099_health_care_tax_change/
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Rick I am giving you MY experiences. Call any well established corporation and ask them how long they have been requesting those forms and sending out 1099s at the end of the year and they will give you the answer. I have a bunch here I recently got from business I did last year. Anyways if you want to argue go right ahead. Knowing you, an argument between you and a brick wall will not surprise me.
I don't care what is written all I know is it is not new!
 
ahoustondj said:
Knowing you, an argument between you and a brick wall will not surprise me.
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I argue with my brick walls daily -- at least they can understand facts when presented to them (unlike some Texans, who shall remain anonymous)... yorofl:
 
In all fairness I read the article as interpreted by the Reporter. The new law "extends the present one".
See quote
"Right now, the IRS Form 1099 is used to document income for individual workers other than wages and salaries. Freelancers receive them each year from their clients, and businesses issue them to the independent contractors they hire."
I think it would be fair to say that we are all freelancers.
The new Bill wants to further extend what had been going on. Got it!
 
rickryan.com said:
FYI, the rules on when you need an EIN (from the IRS website):

Do you have employees?
Do you operate your business as a corporation or a partnership?
Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
Do you withhold taxes on income, other than wages, paid to a non-resident alien?
Do you have a Keogh plan?
Are you involved with any of the following types of organizations?
Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
Estates
Real estate mortgage investment conduits
Non-profit organizations
Farmers' cooperatives
Plan administrators

If you don't require an EIN, I wouldn't voluntarily put myself on their radar. Once you've gone thru a business tax audit, you'll understand.
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You are right an EIN is not required to run a business as a sole proprieter however it does offer you certain personal protection in the form of not having to provide your "personal" SSN on said W-9 forms or other business documents which gives you some what of a sheild from fradulant use of your SSN or even identity theft...

No it is not required for a sole proprieter to even incorporate but, even the most basic articles of incorporation such as an LLC help to further protect your personal finace from your business finance even in a minimal way....

Both of these things make things like opening a business checking account or a merchant account for credit card processing all the more easy to do....

Add to that if you have filed your taxes as an LLC or better for atleast 3 years it will make getting a "business" loan easier and non-reliant on your personal credit score!

There are pluses and minuses on both sides of this topic but, I believe the pluses, especially if you are operating as a business, greatly out weight the minuses.

Just my 2 cents YMMV
 
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