I am not sure where to put this so please move it if it is in the wrong place.
I got a letter from our accountant telling me I have to have on file W9's from all of our vendors that we paid more than $600 during the year. If I don't have them I have to withhold 31% payment from them and pay a penalty that is not refundable.
Has anyone here sent out W9's to their vendors? Do you issue 1099's?
I pulled the following information off of the IRS's website, but make sure you verify this information with your accountant:
"Payments for services performed for a trade or business
by people not treated as its employees. Amounts over $600. 1099's are due to the IRS by February 28th, and to the recepient by January 31st."
Send W-9's to all of your vendors who have performed services for you in excess of $600 such as the screen printer, embroider, etc. so you can collect the required information. Once you have everything you can send them a 1099. You file a 1096 with the IRS for the total of all the 1099's you sent out.
so, does this just apply for services, then? would a 1099 be required for, say, the company I buy blank t-shirts from?
Right, this applies to services you have subcontracted out and can include commissions paid to independent sales reps as well. You are not required to 1099 your t-shirt vendors and other suppliers.
I got a letter from our accountant telling me I have to have on file W9's from all of our vendors that we paid more than $600 during the year. If I don't have them I have to withhold 31% payment from them and pay a penalty that is not refundable.
I've heard the same thing from our accountant and I've gotten the same letter from vendors requiring a w9 or tax info on file for IRS reporting.
so i don't need a w9 from a vendor that sells me stuff but i need it for those that provide services?
If you contract out any work to an outside vendor, you must 1099 them. I will be sending a 1099 to my screen printer, embroider, pad printer, etc. I don't perform any of these services in-house. I will not be sending one to my suppliers such as Sanmar or any other supplier of goods such as Office Depot. It's always best to verify with your accountant if you need to 1099 a certain vendor. That's why we pay them so much money!
This is a discussion about [USA Taxes] do you send W9's to your vendors? that was posted in the General T-Shirt Selling Discussion section of the forums.
[USA Taxes] do you send W9's to your vendors? 
