It is not clear to me when I have to require a W-9. It seems clear when I use services preformed by an individual or business, but do I have to require one for every single payee?

Eg.

Phone service (ej: Bellsouth)
Freight (Fedex)
Supplier of Goods purchased for resale
Good consumed (eg Home Depot; Office Depot; etc... )

What draws the line between whom must send me one or not?

Thanks!

This is essentially the same question you asked on the tax forum, since the W-9 is used for information to do 1099's, so if no 1099, no W-9.

https://www.askmehelpdesk.com/taxes/1099-434906.html

Well, I am not so sure about that. You see, I sell computer furniture, and I sell to many Fortune 500 corporations. They require me to send them a W-9. They know I am a corporation (and not a medical or other especifically required to receive 1099s), and they ask for the W9 anyway. Their letters are quite similar saying that the IRS requires them to receive a W9 from all payees (both for services or goods). Therefore, although I also see the logical connection W9/1099, the 1099 does not seem to be the condition to request a W9... If their letters are correct, and lets say I but ink from Office Depot regularly, I should ask them for a W9, which seems ridiculous. Nevertheless, I have not found a clear explanation by the IRS about when to request it.

Don't assume that just because a Fortune 500 company does it, that makes it necessary. Sometimes companies will just send the same thing to everyone without paying much attention to who it is, perhaps cause they think it's a waste of time to decide who should or should not fill one out. I've never seen anything where the IRA "requires" them to receive one from all payees.

It says to use the form to request taxpayer ID numbers, and to request certain certifications and exemptions. The form itself says it's "used by persons required to file information returns with the IRS to get the payee's correct name and TIN.' It doesn't say it's required to be sent to everyone regardless, but that its use is for when you have to file something on them. (e.g. 1099) It also can be used (not required) if you have a reason to want it in writing that there's no backup withholding required.

No one's stopping you from sending them if you feel more comfortable about it, but if you really want to send one to everyone, I'm not sure why you asked. I was just answering your question.

Thank you. I agree 100% with your opinion. I believe they just require it to have a formal "identification" document for each supplier. Of course, I do not want to ask each supplier and client for one...

Thank you.