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Getting a W-9 isn’t just a checkbox. If the name, TIN, or address on that W-9 is wrong, you can lose hours fixing 1099s, trigger backup withholding, or get a “B-Notice” from the IRS. The good news: a few simple habitsn plus the right tools can wipe out most of these headaches.
This guide shows what “accurate vendor data” really means, why it matters for 1099s, and a step-by-step process you can run today.
Quick facts you should know (2025)
- W-9 (latest revision: March 2024). Use it to collect a vendor’s legal name and TIN and to certify that info. IRS
- 1099-NEC deadline: Generally January 31 to furnish to recipients and to file with the IRS. IRS
- E-file rule: If you file 10+ total information returns (combined across types), you must e-file. Use IRIS (free) or a transmitter. IRS
- Backup withholding: If a TIN is missing/incorrect, payers may have to withhold 24% from future payments. IRS
- E-delivery of recipient copies (like 1099): Allowed only with the recipient’s consent and specific notices. IRS
Why accuracy matters more than you think
- Delays & rework. Even one wrong digit in a TIN, or a nickname instead of a legal name, can cause IRS mismatches. That leads to notices and re-filing. (The IRS issues CP2100/CP2100A when a name/TIN doesn’t match.) IRS
- Cash flow risk. Missing or clearly invalid TINs can force you to start backup withholding at 24% on future payments, awkward for vendor relationships and a pain to manage. IRS
- Bad addresses = returned mail. If you mail recipient copies and the address is off, statements can boomerang back. E-delivery works if you get consent; otherwise, use USPS-standardized addresses to reduce returns. IRS
What “accurate vendor data” actually includes
Think of vendor records as four pillars:
- Legal name that matches IRS/SSA records
- For individuals: full legal name that matches the SSN name.
- For entities: exactly as shown on IRS records for the EIN.
- (Optional but powerful) Use the IRS TIN Matching service (interactive or bulk) before filing to catch combos that don’t match. IRS
- Correct TIN
- SSN/ITIN for individuals; EIN for entities.
- If a TIN is missing or clearly invalid (not nine digits, letters included), you may need to withhold at 24% until corrected. IRS
- USPS-standardized address
- Use standardized street formats and ZIP+4 where possible to cut returned mail and speed delivery. (If you use e-delivery, collect consent and keep it on file.) IRS
- Signed W-9 + certification status
- Always store the signed W-9, plus a change log when details are updated. The March 2024 W-9 is the current revision. IRS
A simple, workflow you can copy
Step 1: Ask for a W-9 before the first payment
Make it part of onboarding: no W-9, no payout setup. (Vendors appreciate the clarity.)
Email template (copy/paste):
Subject: Quick W-9 so we can set you up
Hi {FirstName},
We’re excited to work with you. To set up payments and tax reporting, please complete this short W-9. It takes under 2 minutes.
[Secure W-9 link]
Thanks!
– {Your Company} Payables
Step 2: Standardize the address
- Use USPS validation to fix typos, missing apartment/suite numbers, and outdated ZIPs. This cuts returned mail in January. (If you plan e-delivery, collect and store consent now.) IRS
Step 3: Validate name + TIN
- If you file many 1099s, enroll in IRS TIN Matching (interactive for one-offs, bulk for big lists). Catching mismatches now avoids CP2100 notices later. IRS
Step 4: Track signatures & changes
- Only accept signed W-9s. If a vendor changes name, TIN, or entity type, request a fresh W-9 and keep both the old and new versions. (The W-9 instructions call this out explicitly.) IRS
Step 5: Prep for January
- If you’ll issue 10+ information returns, confirm your e-file plan (IRIS or a filing provider). Don’t leave TCC/IRIS setup for the last minute. IRS
Avoid these common mistakes
- Nicknames and “doing business as” in the wrong field. Use legal name in the legal-name field; put DBA in the business name line if applicable (per W-9 layout). IRS
- Unmasked TINs on recipient copies. You may truncate recipient TINs on recipient statements (XXX-XX-1234) to reduce exposure. IRS
- Missing e-delivery consent. Emailing a 1099 alone isn’t compliant; you need consent + specific notices. IRS
- Waiting until January to fix errors. If the IRS later flags you with a CP2100, you’ll be chasing new W-9s under time pressure and may have to start backup withholding. IRS
What happens if the IRS flags a mismatch?
You may receive a CP2100/CP2100A (often called a “B-Notice”). It lists payees with missing/incorrect TINs. You’ll need to:
- Notify the vendor and solicit a new W-9;
- Begin or continue backup withholding (24%) if required;
- Keep records of your solicitations to avoid penalties for missing TINs. IRS
How GetW9 helps (so you don’t have to babysit spreadsheets)
- Collect & verify in one place: Send secure W-9 requests; vendors e-sign in minutes.
- USPS address validation: Standardizes addresses during collection to reduce returned mail.
- Reminders you don’t have to send: Automatic nudges for missing signatures or fields.
- Save completed W-9 PDFs with a submission history for clean audit trails.
- Optional: If you use QuickBooks, connect it to auto-import vendors—no double entry.
Try GetW9 → Start collecting accurate W-9s in minutes.
Vendor W-9 checklist (print-friendly)
- ☐ Legal name matches IRS/SSA
- ☐ Correct TIN (SSN/ITIN/EIN)
- ☐ Entity type checked (C-corp, S-corp, LLC, etc.)
- ☐ Address USPS-standardized (suite/apartment included)
- ☐ Signed W-9 on file (current revision)
- ☐ E-delivery consent recorded (if using e-delivery for 1099)
- ☐ Added to 1099 e-file list (if applicable)
FAQ
Do I need a new W-9 every year?
No. Get a new one when key details change (name, TIN, entity type), or when you suspect info is outdated. (See W-9 instructions “What’s New/Updates.”) IRS
When are 1099-NEC forms due?
Generally Jan 31 to recipients and the IRS (paper or e-file). Plan to e-file if you’ll hit the 10-return threshold. IRS
Can I email 1099s instead of mailing them?
Yes, but only with proper consent and notices. Keep the consent on file. IRS
What if a vendor refuses to give a TIN?
You may have to backup withhold 24% on payments until they provide a correct TIN. IRS
