Broadband Tech → General Questions > Potential customer requesting W9

Potential customer requesting W9

I have an online store and a customer who wants to buy something is demanding a W9 form. It basically gives your tax ID number and verifies it is legit.

I do not have a tax ID number and I am not into giving out my SS#.

This is a customer I have done business with before so they are legit but I just don't feel good about sending them my SS# even though I stand to make probably $100.00.

Your thoughts would be appreciated.

Thanks,

Bill

Re: [Scam] Potential customer requesting W9

Possibly show them your use tax number for collecting Sales Tax. This would be through your State Revenue Department?

This is about your customer filing form 1099 with the IRS.
Google "form 1099" & then decide what is in your best interest.

This may be outdated but last time I looked the threshold for filing a 1099 was @payments exceeding $600 in a calendar year.
if you haven't hit that threshold with the customer you may want to mention that.

Generally, W9s are not used for retail purchases. It is for *unincorporated* independent contractors, consultants, non-corp LLCs, and other self-employed workers who provide *services* of $600 or more in any given year to another business. The Affordable Care Act had originally included a requirement for all B2B transactions of $600 or more per year be reported on 1099s. That provision was repealed in 2011. So, if you are selling ready-made products, there is no reason to provide a TIN to a customer.
--
"Dance like the photo isn't being tagged; love like you've never been unfriended; and tweet like nobody is following."

If he is acting as a retail merchant and selling under a trade name, he technically does not need to provide his TIN. However, if he is selling in his name, the customer is not being unreasonable and he should just give them his SSN if he is that determined to make the sale. If OP does not want this hassle in the future, he has to register a business entity/trade name of some kind and obtain a tax ID for it. OP needs to understand that conducting any kind of business in the real world is subject to rules. Frankly, OP sounds like he's just being rebellious and was looking for validation. I don't condone that mentality.
--
"Dance like the photo isn't being tagged; love like you've never been unfriended; and tweet like nobody is following."

Re: [Scam] Potential customer requesting W9

This particular forum is for posting heads-ups/discussing scams, phishing attempts, ID theft, other types of fraud attempts that members encounter. OP thought a legit business wanting a taxpayer ID before it would do business with him fell in that category.
--
"Dance like the photo isn't being tagged; love like you've never been unfriended; and tweet like nobody is following."

From the OP:
"I have an online store and a customer who wants to buy something is demanding a W9 form. It basically gives your tax ID number and verifies it is legit."

That's a legit concern of small business owners -
Is the request legit -
Do I need to supply the W9 to the requester -

If the requester is a company the business owner has never dealt with including any subsidiaries, then no, their is no legal obligation to provide a W9 just because someone asked for it. The risk of identity theft is a good reason to NOT provide it.

That's also why this thread is probably correctly positioned in the Scam/Phishbuster forum.
Business owners rightfully question the need to provide W9's because of identity theft concerns, where should this thread go & more on point how will that better serve business owners wondering if their being targeted for identity theft?

You're wrong regarding both points.

1. It is a business owner's responsibility to set up their operation properly, and to know what their various reporting obligations are *BEFORE* they commence sales. OP gives the impression he is conducting business in his own name, not a trade name. As I explained previously, in this case a business customer is justified requiring he provide his SSN (and they correctly report sales of $600 or more on 1099 Misc).

2. This thread does not belong in Scam Busters. It is a legit business following their procedure for vetting a new vendor. OP stated this. Frankly, OP is being sketchy by not setting up his business properly with the guidance of an attorney and accountant.
--
"Dance like the photo isn't being tagged; love like you've never been unfriended; and tweet like nobody is following."

Re: Potential customer requesting W9

From what I can tell, being asked for a W9 is not in itself indicative of fraud or a phish scheme. It seems these requests are somewhat common:

»www.irs.gov/uac/Form-W-9,-Reques···fication

Even if there is nothing amiss, I'm not sure if a W9 is relevant to your transaction. It sounds like the person may be asking for something they do not need, or their tax status changed since you last did business with them.

Still, it's a moot point if you don't have have a Tax ID to begin with. Tell them you don't have a Tax ID and therefore, cannot issue a W9. Let them decide for themselves where to go with that.

No, do not give them your personal social security number.

Re: [Scam] Potential customer requesting W9

Re: Potential customer requesting W9

Bill, I don't know the technical aspects of this like those upthread, but I too am a corporate drone responsible for buying and paying bills from vendors like you. To do that, we have to set you up in our system as a vendor, and to do THAT, a federal tax id number or a ssn is mandatory. There is nothing nefarious about it. If the sale is worth more than whatever misgivings you may have, go for it. If not, expect to lose more sales in the future from companies like mine (if you choose to sell to them).
--
The world was movin' she was right there with it and she was

bionicRod is spot on.
I've been working as an independent contractor (1099) for many many years. Almost all of my customers require a tax ID# or in my case a SSN. This accomplishes 2 things:
1. Company XYZ paying for my services can say to the IRS "hey, we just paid this guy $$$$ for his services and would like to deduct it as a business expense. Here's his SSN/TID. Come April, Company XYZ will send me a 1099 reflecting how much they paid me that year.
2. Come April I will file my taxes and say to the IRS "hey, Company XYZ paid me $$$$, here's your cut of it. But they already know how much I was paid because Company XYZ has my Tax ID# and reported the same amount as a business expense.

... someone asking for legal/tax advise on an internet forum ........ looks like a formula for disaster. Why don't you go to your accountant and ask him. He'll have all the answers and will have to stand behind his advise .....

If I want to add a vendor to our school district vendor list, I have to have a W9 to do it.
--
Fast. Cheap. Safe.
Pick two...