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You want to pay someone: Here's a free W-9 Guide

One challenge of owning a small business is collecting W-9s and knowing when to send a 1099. As a general rule, if you pay anyone $600 or more by cash, check, or debit (but not credit card) you should collect a W-9 and evaluate whether or not you need to send a 1099. These would include payments for services, not goods.

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To download the most recent Form W-9, visit this IRS website: https://www.irs.gov/forms-pubs/about-form-w-9

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To read more about when to file Form 1099, visit this IRS website: https://www.irs.gov/businesses/small-businesses-self-employed/am-i-required-to-file-a-form-1099-or-other-information-return

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In order to request W-9s from your vendors, feel free to copy/paste the free script below.

Dear [Vendor],

 

As a vendor who may earn $600 or more from [Your Organization Name] during [Current Year]. The IRS requires us to request a W-9 from you so we can evaluate the need to provide you with a 1099 before January 31. In order to protect our long-term business relationship, please complete the attached form and return to us no later than [seven days from now].

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Instead of sending this form via email, please use this encrypted link to upload it securely. Email is not a secure method of communication for sensitive taxpayer ID numbers.

 

https://docs.google.com/forms/d/e/1FAIpQLSdXj3yIm5lNCqdkqIohZ8SzZKWfe4l3A9zcdtA6d3QLTunzug/viewform

 

 

Many thanks,

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