You gotta love accountants

[dpd1]

OK, so this little city in the south bought something a little over $100 from us a while back. I've been getting their accountant sending me W-9s to fill out for it ever since. I gave her our EIN and she just keeps sending it. I'm no tax expert, but we've sold stuff to each military branch, numerous giant DOD contractors, and numerous municipalities... None of them asked for a W-9. If the US Navy doesn't need a W-9, I'm wondering why some lady in a tiny little town thinks she does.

[LifeinAsia]

Someone (at the city) is apparently confused about the new IRS reporting rules for 1099s.

If you want to waste your time, you can send the person a copy of the reporting rules and point out why you do not need to send a W-9.

But since small governments can have as much bureaucracy as big ones, it's probably easier to just complete a W-9 and send it. Otherwise, you'll most likely be caught in an endless loop of requests for it.

[RhinoFish]

call their local news reporter and get them to do a story on govt waste.

[Rugles]

We get requests for them all the time. Because a significant chunk of our business is with government agencies at all levels. We just do it. Not a big deal ... and we are a Canadian company so I am not even sure if it necessary.

[dpd1]

Yeah, I'm just going to send it. But it's just a pet peeve of mine, when people who obviously need to create work for themselves to justify their existence... do it by creating more work for other people who already have plenty enough work as it is. I called the IRS and they said there is absolutely nothing that says you have to fill anything out. At least not up to $600, and that's for people's personal income. I mean, what... One of their guys goes to the hardware store to get a bolt for their snow plow or something, and she's going to W-9 the hardware store? This woman is calling this transaction "reportable", whatever that means. So I think she's off her rocker.

I've worked at businesses that had people like this... They act like their business, and the whole world in general, serves no other purpose than to answer their never ending demand for unnecessary paperwork.

[HRoth]

"One of their guys goes to the hardware store to get a bolt for their snow plow or something, and she's going to W-9 the hardware store? "

You betcha. I got a request like this over a sale of $15.00 to an institution. They kept emailing me over the course of a year to fill out a W-9. I am not ever filling out a W-9 over a $15.00 sale. I don't even understand why a purchase of an object should require such a form, regardless of how much it costs. I thought this was for work done.

[dpd1]

You betcha. I got a request like this over a sale of $15.00 to an institution. They kept emailing me over the course of a year to fill out a W-9. I am not ever filling out a W-9 over a $15.00 sale. I don't even understand why a purchase of an object should require such a form, regardless of how much it costs.

It shouldn't! There are corps and municipalities that require certain things setup ahead of time for you to be an approved vendor, because in gov procurement, the fed requires that you make sure it's not a biz that isn't paying taxes or doing something illegal. However... If they just go and buy some 'petty cash' type of thing without setting anything up, that's their problem. These are just people that have no life... But problem is, you have no idea what one of them will do. I wouldn't put it past them to drop a dime and claim you're not paying your taxes or some crazy thing.

[LifeinAsia]

I don't even understand why a purchase of an object should require such a form, regardless of how much it costs.

Because hidden in the hundreds of pages of the new health care bill is the requirement that businesses must issue 1099s to ALL businesses and individuals to whom they paid more than $600. (See previous discussion [webmasterworld.com].)

Rather than having to scramble at the end of the year to get the tax IDs for everyone that exceeds the $600 threshold, a lot of places are probably being proactive and just getting the info upfront.

Personally, I'm hoping that part (if not the whole thing) gets repealed. If not, we pay almost everyone by credit card (CC purchases are exempt from the new requirement) or are issuing a 1099 anyway.

[dpd1]

In my instance, that's not it... She's doing it because she works for a city, and she thinks they're required to make sure everybody fills out a W-9 to prove they can legally do business with them. So I guess this new version is just a similar thing for everybody. But are we sure that's not just for services rendered? Because I have hard time believing that even our government expects a 1099 for everything you ever bought from anybody over $600.