Corporate Events W9 Tax Form (is this normal)

TES3S

DJ Extraordinaire
Sep 18, 2016
181
Los Angeles, CA
I mainly do weddings, and a few corporate events a year. I was hired by a large corporate company and the person handling the event said the following:

"I can pay via CC or a check. If you prefer a check, can you please send a copy of your updated W9 (2017 version) and an invoice."

And why 2017? I don't get that part at all. I can get a 2018 one (PDF online), but 2019 is not even available.

From basic research, it seems it is perfectly legit for them to ask me to send a W9, but why do they mention it only with a check. I would think if paying credit card, I would still need to send them a W9.

I guess previous companies did not ask me for a W9 for some reason or another?

Any help is much appreciated.
 
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djtaso

DJ Extraordinaire
Apr 4, 2017
4,487
32
NJ
www.djtaso.com
This isn't the most technical answer, but W9 essentially forces you to report it as income, since it is documented as such, and they're writing it off as an expense. If they pay by credit card, it essentially is documented as a transaction I would assume, and perhaps why they don't necessarily need one. Why they want a 2017 one is beyond me. It could just be a typo... perhaps an email they send to all their 1099's and they recycled the 2017 email and should actually say 2018. Either way, it looks exactly the same, and there wouldn't be a difference between a 2017 version or 2018 unless your info changed, as well as the date of signature.
 

TES3S

DJ Extraordinaire
Sep 18, 2016
181
Los Angeles, CA
Is there any advantage to me having them pay via credit card? I doubt I will owe less or more taxes on that job, as it's still income.

I assume it's the same as getting paid any other meathod on my end? Income is income...
 
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djtaso

DJ Extraordinaire
Apr 4, 2017
4,487
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Is there any advantage to me having them pay via credit card? I doubt I will owe less or more taxes on that job, as it's still income.

I assume it's the same as getting paid any other meathod on my end? Income is income...
I’m not really sure the accounting that is taking place on their end and what their accountants are advising them to do for record keeping... but on your end, income is income... as long as you report it you got nothing to worry about. The only difference with a w9 and them sending you a 1099 is that it is now documented as income which you are expected to report. Technically speaking, a client could give you a check, and you deposit it into a personal or business account and not report it as income (you could claim it was a refund check for something)... this prevents you from having the ability to do that.
 
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TES3S

DJ Extraordinaire
Sep 18, 2016
181
Los Angeles, CA
ok, Thanks Taso!!

Llast question.

It appears if it is ONLY for charges that are $600 or over? Do they not have to send a 1099 if the payment is less than $600?
 

djtaso

DJ Extraordinaire
Apr 4, 2017
4,487
32
NJ
www.djtaso.com
ok, Thanks Taso!!

Llast question.

It appears if it is ONLY for charges that are $600 or over? Do they not have to send a 1099 if the payment is less than $600?
I actually asked my accountant the same question, since I had a subcontract for 1 event that was $350... he said I'm not required to... Idk if that means they can or can't... but it's not required. The person receiving the $350 is still technically responsible for reporting the $350... but thats on them to do so... not me to report it. By the way... its $600 cumulative... so if you worked for 2 events at $500 each... then you do get a 1099 for $1000.
 

Albatross

DJ Extraordinaire
Sep 7, 2016
3,813
Any company that pays a contractor more than $600 in a year is required to issue a 1099. Otherwise they can't write off the payment as an expense. Just like if you sub-contract another DJ and pay them more than $600 per year - you're supposed to have collected a W9 and issue a 1099.

They're basically just making sure that they follow the procedure on being able to write off the expense.

However, if they are paying by credit card... it might be assumed that having a merchant account does a couple of things. It creates a very solid paper trail... so there is less likelihood that you simply cash the check and never report the income. And, it might show up in their company expenses as a payment to a company. When you are paying a company vs. and individual - the 1099 rules aren't the same.
 

Scott Hanna

DJ Extraordinaire
Oct 25, 2006
6,011
52
Cleveland, OH
www.djincleveland.com
As far as I know, Ross is right on. Taso too.

The companies won't need an updated one if your info doesn't change or the form isn't updated

I believe the government updated the forms in 2017, so that why that is.

I keep a filled out w-9 PDF on my phone an iPad so if someone needs it I can send it right to them.

The current one I have is a 2017 one.
 

wifedj

DJ Extraordinaire
Mar 20, 2008
1,388
Late to the party but the "2017" is obviously a simple error.

All the other advice offered is SPOT ON MATE!
 
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Proformance

DJ Extraordinaire
Nov 6, 2006
3,310
The company is requesting the last (latest) version on the form published by the IRS. You can also provide your own form so long as the information and statements provided conform to IRS requirements.

A corporation needs to verify your form of business. If you are incorporated they do not need to file information returns with the IRS. A company making payments to individuals or a partnership is required to file information returns (Form 1099-Misc). This is true regardless of whether you use your social security number or Federal TIN.

When payng by credit card the information return may not be required because your merchant provider also files information returns about your annual charge volume (Form 1099-K). A lot of companies would send a 1099-Misc anyway because it's a best practice.

It really has nothing to do with your customer's needs. These are information returns the IRS can use to check up on the income reporting of self-employed persons, or people working side jobs.
 

Proformance

DJ Extraordinaire
Nov 6, 2006
3,310
Companies can and do update their W-9 requests to vendors annually. It's the date of your signature that matters so the form needs to updated periodically.
 

TES3S

DJ Extraordinaire
Sep 18, 2016
181
Los Angeles, CA
So 2017 was just from a generic form. I then, after the gig received this W9 substitute form. Wasn't sure what it was but I was requested to fill out and send back. I asked the person I had been dealing with at Farmers and was told this:

"The request came from Farmers Tax System it is an automated request that is sent when the vendors first payment is made."

I only received one payment for this gig (after the gig was complete) so it makes sense but had never received W9 substitute form.
 
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Proformance

DJ Extraordinaire
Nov 6, 2006
3,310
A lot of IRS forms can be customized. Every number of years the IRS may update their own form designs or instructions and it's that latest version of the form that the IRS is known to have approved.
 

NightOwlDJs

Active DJ
Nov 29, 2011
41
45
I will take a check over a CC anytime to eliminate processing fees. Which unless I missed and already stated would be the benefit of check payment. Save yourself some money if you can!!