W-9 question

Technially they're not actually required to fill out a W-9, but they are required to give you their tax ID number. If they don't, you're not supposed to pay them until you withhold 30%, which is supposed to get paid over to the IRS for their account.

You said "you're not supposed to pay them until you withhold 30%, which is supposed to get paid over to the IRS for their account."

How would you turn it to the IRS for the payee account without knowing payee's SSN or TIN?

Maria U. Ku, CPA Oakland, CA

Here are the steps according to IRS Publication 1281:

1. Begin backup withholding on any reportable payment you make and continue backup withholding until you receive a TIN. Remember that in some cases, the TIN must be certified.
2. Do not send a first or second ?B? Notice in response to the CP2100 or CP2100A Notice. However, in order to avoid a penalty for filing an information return that omitted the payee?s TIN, you must make a first annual solicitation for the TIN (generally by December 31 of the year in which the account is opened) and if a TIN is still not received make a second annual solicitation by December 31 of the following year. No annual solicitations are required in the years in which no reported payments are made.
3. Report amounts withheld on Form 945, Annual Return of Withheld Federal Income Tax, and make the required deposits.

It looks like they can't get credit until they give you their TIN. But this is not my area, so hopefully someone will come along shortly with more information.