Well, we are up to our waists in snow (in some places, other places it is only covering the grass), the office manager and partner (Mom and Dad respectively) have headed to the Maine Convention en route to Belize for a week of well deserved R&R. After two days out of the office and a million things to handle, I have some accountant call and demand that we provide our TIN for a client to issue a W-9; their deadline is Monday. Office manager Mom was not available until after 5 to describe where she hides it in her cabinets of official stuff that partner Dad deals with more than I do. I am the technical side and would happily remain there for the rest of my days.
So, here I sit after a long day. I read the IRS stuff on W-9's. I do not understand how it would benefit a client to go through this process. Does anybody know the reason?
Would it have mattered that the last invoice for his project was sent and paid in 2010?
I'll probably dig it out and provide it tomorrow, but my curiosity is now getting me wondering why.
I can't think of any logical reason someone would have a deadline for issuing five year old W-9s. Maybe they should have thought of that in 2010. Maybe they're getting audited by the IRS....
Take your time.
Lack of prep on their part shouldn't constitute an emergency on your part.
If they're paid up and you don't care about the relationship, just ignore them. If you care about the relationship, but not enough to divert time from paying work, tell them to wait until your bookkeeper returns from vacation. If you care about the relationship so much that you need to keep them happy at all costs, keep digging.
The end of January deadline should only apply to 2014 transactions, not 2010.
I would ignore him/her entirely.
OK - I'm not an expert on IRS law, but here's what I understand:
- An individual (as defined by the IRS includes various business entities) must provide their TIN when requested.
- The appropriate method of request is to be provided a W-9 or substantially equivalent form.
- An obnoxious phone call is not an appropriate request.
- People who make payments to people (i.e. your firm) are required to fill out a 1099 under certain conditions. The 1099 requires the TIN of the payee.
Now this is going to get political, but it's all a bunch of hooey for the IRS to try to control our lives.
And BTW - the reason they are so anxious is that 1099's are due out by the end of January and they are in a last minute panic.
It might not even be an IRS audit--it could be a company audit and it turns out the financial controls aren't up to snuff...
> It might not even be an IRS audit--it could be a company audit and it turns out the financial controls aren't up to snuff...
Or their records are so bad they had someone do a survey and don't have a way to document the expense. They issue a 1099 for the expense to the wrong firm and foul up your tax records. I would be very reluctant to comply without a written request.