1. Form W-9

Are 1099 & W-9 the same?

The IRS Form W-9 & IRS Form 1099 are often interchangeably used when referring to year-end tax forms, however, both forms are very different and serve different purposes. Here’s a quick summary of what each form is:

Form W-9
✅ The Form W-9 is used to obtain data such as name, address & tax identification number from your contractors, vendors, suppliers, etc.
✅ The W-9 is not an annual form, it should be collected throughout the year from whomever you issue payments to.
✅ The W-9 does not get filed with the IRS or any agency. You keep it in your records.
✅ You do not need a W-9 from your employees, they would provide you with a W-4.

Form 1099
✅ A 1099 is issued to various types of contractors, vendors, suppliers, landlords, etc. to whom you made payments during the calendar year.
✅ There are many types of 1099 forms, such as 1099-NEC (nonemployee compensation), 1099-MISC, 1099-INT, etc.
✅ A copy of the 1099 does get filed with the IRS and certain state agencies, and you also send your contractors, vendors, suppliers, landlords, etc., a copy of the 1099 after the year has ended.
✅ Failure to issue a required 1099 could cause you to potentially loose a deduction/expense on your business tax return.

We highly recommend that you have a potential vendor, supplier, or independent contractor complete a Form W-9 prior to engaging in business with him or her.

If you have any other questions regarding the W-9, please feel free to email us at team@getw9.tax!

Vic @ getW9
Automate how you collect & store the Form W-9!

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