|Buyer want our company's W9. Do we need to sign? |
Do we need to sign the form? If we have to, who can sign? My boss?
If they want it, provide it. If you don't want to provide it, don't provide it. You may not "need" to, but it might prevent you from working with them if they want it.
The instructions for W-9 describe the circumstances when you must provide a signature on the form, and the circumstances when you are not required to sign it.
It also describes whose signature must appear there, if any.
You must always provide accurate information, whether you sign the form or not.
See Form W-9 download link on home page at [irs.gov...]
At the outset of work, whether you agree to provide a W-9 is your choice. I would suggest not providing one at the outset of work, as they have no legal need for your taxpayer ID# at that time. Instead, you can tell them that when their payments reach the threshold dollar amount that a Form 1099 is required, you'll be happy to send a W-9.
My understanding is that after they have paid you enough that they are required to report those payments on a Form 1099, you are then required to send them a W-9 on request, so they can report your taxpayer ID on the 1099.
I believe the threshold for a 1099 is $750 in a calendar year.
I am not certain of the info above after the "----". Someone please correct if wrong.
You can probably find all answers by browsing the IRS website and downloading relevant files, such as instructions for Forms 1096 and 1099.
In my experience... whether it's actually needed or not is usually irrelevant. When it comes to this kind of stuff, it's usually controlled by some bookkeeper who has convinced herself that she is the epicenter of the universe... therefore resistance is futile. If no harm can be done, just give it to them.
Are you providing a service or a product?
lexipixel, we are selling products online.
We have had to sign lots of them. Which is strange when you consider we are a Canadian company.
|In my experience... whether it's actually needed or not is usually irrelevant. When it comes to this kind of stuff, it's usually controlled by some bookkeeper who has convinced herself that she is the epicenter of the universe... therefore resistance is futile. If no harm can be done, just give it to them. |
That's what's going on right there. Sign and don't worry about it.
|Do we need to sign the form? If we have to, who can sign? My boss? |
No, legally not until you reach the threshold as SteveWh says. Practically, many companies make it a mandatory part of opening an account to do business with them.
|We have had to sign lots of them. Which is strange when you consider we are a Canadian company. |
Because they don't know you're actually supposed to request a W8-BEN, W8-ECI, or W8-IMY from foreign entities depending on their circumstances... You *technically* can't sign a W9 unless you're a US citizen or a defined "US person". ;-)
If you're a foreign person/corporation, be careful, because by signing a W9 you are certifying that you're a US citizen or US person, under penalty of perjury. I've never heard of anyone getting in hot water for this but you are making a false declaration by signing the W9.
We've had Fortune 500 companies (incorrectly) request a W9.
If we get asked for a W9, we send them the W8-BEN. Usually they get confused and re-ask for a W9, and then we explain to them that we legally can't sign it. After that, they usually go away and find someone who knows what the W8-BEN is and accepts it.
|We've had Fortune 500 companies (incorrectly) request a W9. |
And if I recall correctly, there's a bunch of different versions of the W-8 (which as bakedjake notes, is actually the form you should be signing). So make sure you're signing the right one. IIRC, the 'right one' should be relatively obvious based on the fields.
|we are selling products online |
Seems strange then -- you are not performing "work".
If you haven't actually sold them anything yet and have not yet received any money/payment from them, it may be an attempt at identity theft or someone gathering info for some other fraudulent type of online activity.
Have you sent them any goods or have they paid you anything yet?