6 ms·

How to decline sending a W9 to client?

• debacle 12y ago
  You will be financially penalized if your client has to file a 1099 without your tax ID number(s). You are required by law to provide them with your tax ID. Edit: This is also how consulting and contracting works. If you've never requested or sent someone an W-9/1099 before, get used to it.
  • Apane101 12y ago
    How so? They don't have my SIN number or anything. Please elaborate. I'm open to all suggestions here.
    • debacle 12y ago
      Either you report that income on your taxes via 1099 and then the IRS goes to the company that created the 1099 and asks them why the 1099 doesn't have a TIN or you don't report the income on your taxes and the IRS finds out and fines you for tax evasion. Edit: I see that you are Canadian. Unfortunately for your aspirations of tax evasion, the US and Canada have a very friendly information sharing relationship.
      • Apane101 12y ago
        Look, I'm not aspiring to do what you are suggesting. I'm simply inquiring more into the process. Also, if they don't have my information how will they find out who's who? There are at least 100 people in my city with the same name. I'm geniuinely curious as to how this whole thing works..
• 7Figures2Commas 12y ago
  You seem to be confused. Refusing your client's W-9 request doesn't eliminate your need to issue 1099s for your subcontractors. There are potential penalties associated with each. Additionally, if you refuse to provide the W-9 and are still doing work for your client, don't be surprised if the client starts backup withholding.
  • Apane101 12y ago
    All of the work is done at this point. And I am a bit confused, as I'm based up in Canada and they're in the U.S. We don't have 1099's and W9's here from what I understand.
    • 7Figures2Commas 12y ago
      That's a critical piece of information you omitted. It sounds like your client is not aware of the fact that you're a Canadian citizen (?) and did not perform work in the United States. Sometimes companies will require that you certify that you're a foreigner using a Form W-8BEN. If you're not able to resolve this issue with your client by explaining your status and it's creating issues for you, you should consult with an attorney. It also sounds like it would be worthwhile for you to consult with an accountant who can educate you about your obligations to your clients and your subcontractors generally.
      • Apane101 12y ago
        Thanks for the feedback. They're well aware that I'm located in Canada as all of that information was outlined on the initial agreement. I'm just a bit taken back as I've worked with other clients who have never asked for this. It's likely that these particular clients would like to declare these expenses/right them off to lower their taxable income, I just wish they would have mentioned this before hand so I could have prepared for this.. The sub-contractors are based in Europe so it's really a massive loss for me if I were to go that route. Also, I've already been paid in full. So at this point I have nothing to lose really.
• tannk11001 12y ago
  Just talk to them. Standard Operating Procedure would be for them to file a 1099, which generally requires a W9 that provides your information. The person asking for a W9 from you is probably not familiar with how this changes when working with workers outside the US. You can explain that you won't be able to complete a W9 because they're only for US citizens and residents and see where the conversation goes from there. They still need to declare and classify their expense, so may need you to complete some other paperwork, but it doesn't really effect anything about your own tax obligations or filing requirements. Don't worry about it.