General Consultant Discussion

Why do some customers require W9's every year and others don't? Are they just playing it safe by getting updated information year after year? Or are the other customers being negligent?

Like how often can your FEIN or SS change? Perhaps they subscribe to the Avalara service that prompts them to ask. Or maybe their backup crashed and they lost all documentation...

I think it is more likely that they missed the memo on the repealing of the 1099 filing requirements under the original passing of ACA in 2011. Here's a good article: http://www.journalofaccountancy.com/news/2011/apr/20114071.html

Brian - I'm super lazy and apparently have poor reading comprehension. I read that article and came to the conclusion: whew, that's a lot of words. What does that article say? Should customers request new 1099s each year or not?

Unless you are paying an individual or a law firm (there may be other industries like real estate companies, for example), you do NOT need to file 1099s for companies you do business with. That is the short answer. Disclaimer: seek advice from your lawyer or CPA as it relates to your business; do NOT ask the IRS or any other gov't agency because those organizations will make you do stuff for no other reason than to justify its own existence. Happy Day!

Thanks Brian!

We also tell customers to send the 1099 if in doubt. No penalty to send one that does not need to be sent - but there penalties the other way. Customers are not required to send us one, but I have learned to have a copy of the a W9 that I can easily forward and save myself the debate. They said that law firms were excepted in the law as lawmakers thought the ethics of attorneys needed extra supervision.