Am I really an "exempt payee" on the w-9?
Short answer: If you have not been notified otherwise, then you are not "subject" to backup withholding, but you do not check the "exempt payee" box either. Simply completing the rest of the form and signing it without crossing out any text is enough to prevent backup withholding. You check the "exempt payee" box only if one of the "specific exceptions" applies to you. If you have been notified that you are subject to backup withholding, then you cross out the text "I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and" in Part II, item 2. Long answer: The answers that say "basically everyone is exempt" mean that you are exempt from the requirement to cross out the text "I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and" in Part II, item 2, and that you are not subject to backup withholding. They do not mean that you check the "exempt payee" box. The badly written instructions that say "Generally, individuals (including sole proprietors) are not exempt" mean only that item "(a) I am exempt from backup withholding" does not apply to you. They do not mean that you are subject to backup withholding. If item (b) or (c) applies to you, and item (a) does not, then you are not subject to backup withholding, but you do not check the exempt box.
by StephenWeinstein - 21 hours ago
when completing a W-9, corporations are exempt from withholding as well as not being required to be issued a 1099 until the payer has been notified by IRS to withhold(backup withholding) on any future payments to you, you essentially are exempt this will occur when your income is such that there is a sizeable tax liability, especially se taxes, that you have not previously paid in with your estimated and you have been sluggish in paying what you owe
by tro - 21 hours ago
Okay, so you're not exempt. 30% of the amount you invoice will be withheld by your customer/client, who will have to issue you a 1099 and send the 30% to the IRS. Happy?
by Ghost of Zeuz - 21 hours ago
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