I work at a School District and we are currently being audited by the IRS. We are getting dinged because we didn't have a W-9 for everyone we paid. I have requested a W-9 from all vendors (which has been no problem) but a teacher or any person that we are paying for any reason do not want to give me a W-9 for fear I will send a 1099. I have explained that if it is for supplies or a reimbusement they won't get a 1099 but they still don't want to give me a W-2. I thought I understood from our IRS guy that we should have a W-9 for everyone we write a check to. Is it legal and should I be asking for one from everyone?

It is required for now, because the new healthcare laws greatly increased the 1099 reporting requirement.

There is a move in Congress to rescind that law, but until that actually happens, count on getting a signed Form W-9 from EVERYONE to whom you send a check.