We are having a problem getting good W9s for a certain segment. We work in real estate and with foreclosed homes. Many times, instead of going through a foreclosure process and paying attorneys, the bank will agree to pay the occupant 'Cash for Keys' in order to agree to vacate. We often have to front this money and the bank will reimburse us. When getting a W9 from an occupant, they often don't even know where they are going to be living next and invariably just put their current address(the house they are vacating) on their W9. This causes problems at 1099 time and IRS has sent letters before, but we really have no way to track these people down after this one transaction. It is not like we are doing any continued business with them. Any tips for how we can change our practices or limit the notices we get after sending 1099s? Thanks in advance
USA W9 without an address or with old address
- Thread starter Jimbo123
- Start date
The IRS letters probably say they could not reconcile the information and thus require you to correct it or withhold for future transactions. Since there are no future transactions, the letters are mute.
Since you have a signed W9 from the recipient, you should be covered. It is not your job to keep track of people after you are done with the transactions.
With that said if you know a W9 has incorrect information you should not accept it or give money based on it. The fact that they list their address as the home you are taking does not invalidate the W9.
Since you have a signed W9 from the recipient, you should be covered. It is not your job to keep track of people after you are done with the transactions.
With that said if you know a W9 has incorrect information you should not accept it or give money based on it. The fact that they list their address as the home you are taking does not invalidate the W9.