We are a U.S.-based company that has acquired a foreign entity.

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Q. (cont.)

While all invoices are to be paid from our U.S. office, we will be keeping the foreign office location and banking relationship to initiate all payments from. Since payments will be initiated from the foreign bank, is it necessary to obtain W-9s or W-8BENs for all of their vendor relationships? Because they do not have 1099 reporting requirements, they have no W-9s or W-8BENs on file.

 

A.

We spoke with IRS reporting specialist Ms. Morrison (ID #1003375683), who said that yes, you will need to obtain the appropriate W-8 or W-9 forms from the acquired company's vendors for reporting purposes.

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