IRS Form W-9 and 1099 Income Reporting Information
calmus, 07/05
W-9 forms are used to collect taxpayer TIN’s (tax identification numbers). TIN’s are used to report qualifying income payments annually to the IRS on form 1099. The submitter certifies with a signature that he or she has submitted the correct TIN and taxable status. We must be reasonably certain that the W-9 was received from the submitter or authorized agent. Many categories of payments are exempt from 1099 income tax reporting. These include: Payments made to: Corporations Tax exempt organizations US and State governments District of Columbia Payment card transactions if payee is in MCC not requiring reporting Merchandise, telegrams, telephone, freight, storage Rent to real estate agents Wages Travel allowances Scholarships (use a W-2) Employee business expenses
Payments for:
Payments totaling less than $600 in a calendar year Expense reimbursements for outside consultants may be exempted from 1099 reporting by Accounts Payable. This is done only when documentation is provided that complies with DU’s reimbursement policies for staff. Specifically, original invoices and receipts must be provided. The matrix below describes common payment scenarios and W-9 and 1099 reporting requirements. Payee: Students Type of Payment: Reimbursement of Expenses Stipends, Fellowships, Scholarships Gifts and Awards Independent Consulting Reimbursement of Expenses Gifts and Awards Grants Independent Consulting Payments for Merchandise Medical and Health Payments Attorney Fees Payment for Services W-9 Required? No No No Yes No No No Yes Yes Yes Yes Yes 1099 Reporting No No No Yes No No No Yes No Yes Yes Yes, unless the vendor is a corporation, a non-profit corporation, or a US, State, or local government entity Yes, unless the vendor is a corporation, a non-profit corporation, or a US, State, or local government entity Yes, unless documentation
Faculty & Staff
Outside Vendors
Independent Consultants
Payments for Services
Yes
Reimbursement of Expenses
Yes
Payee:
Type of Payment: Medical and Health Payments Attorney Fees
W-9 Required? Yes Yes Yes Yes Yes
complies with DU policies 1099 Reporting Yes Yes Yes Yes Yes, unless documentation complies with DU policies No
Affiliates
Honorariums Payments for Services Reimbursement of Expenses
Foreign Service Providers (Individuals)
Foreign Services
No
Domestic Services
W-8 BEN Req’d
30% withholding applies, unless exempted or reduced by treaty as listed on form 8233