Q. (cont.) It is my understanding that if the TIN is printed on the invoice, that is sufficient for 1099 reporting purposes. Please advise.
A. For new vendors you should be using the latest form W-9, in this case, the December 2014 version.
Tax reporting experts at Cokala say this: “The Form W-9 is the primary form used to solicit payee name and TIN information. … In December 2014, the IRS issued a new Form W-9. This version is the current Form W-9 and should be used to obtain name and TIN information from your vendors as well as for “B Notice” and proposed penalty notice processing procedures, etc. This new version of the form also includes spaces for codes for a payee to indicate an exemption from Form 1099 reporting and for the payee to indicate a FATCA exemption (if applicable).
“… Payers are not required to re-solicit new Forms W-9 form their current vendors every time the IRS modifies the form. Rather, payers should switch to the new form, or modify their substitute forms to comport with IRS changes, as soon as is practical after the IRS publishes as final any modified version of the W-9.”
This question was answered by COKALA Tax Information Reporting Solutions, LLC, a 3rd party, independent advisory services firm offering experienced and practical help for tax regulatory compliance for Forms W-9, W-8, W-2, 1099, 1098, 5498, 945, 1042, 1042-S, and state reporting. You can learn more about them at www.cokala.com.