Posted by ToniK on 7/17/13 7:58am
Msg #477093

Exempt payee box on W9

As an Independent contractor, do we check off this box?

I received an email from Servicelink that states to check off the exempt payee box or ServiceLink will be required to withhold 28% backup withholding tax.

Reply by 101livescan on 7/17/13 8:15am
Msg #477094

I checked with my CPA, this is correct.

Reply by 101livescan on 7/17/13 1:08pm
Msg #477159

Whoa, too early to type. I should have sent IND/SOLE PROP is correct. We are not exempt from taxes, ever, unfortunately. I've never seen this request before either, but I've already emailed them to see what the confusion is.

Reply by MW/VA on 7/17/13 8:19am
Msg #477095

Now that's a first. I sounds like they're treating it as

an employee instead of independent contractor. I've never had a co. request to hold taxes.

Reply by ToniK on 7/17/13 8:30am
Msg #477098

Re: Now that's a first. I sounds like they're treating it as

Same thing I was thinking. I never had this request before.

Reply by Linda_H/FL on 7/17/13 9:18am
Msg #477103

From a form W-9

"Certain payees and payments are exempt from backup withholding. See the instructions below and the separate Instructions for the Requester of Form W-9."

http://www.irs.gov/pub/irs-pdf/fw9.pdf

Reply by NVLSlady/VA on 7/17/13 9:36am
Msg #477106

Yikes! SL has a Due Diligence finance dept (on overkill). My application with them was put on hold for a different w9 issue. No one else has ever questioned!

(any tax guru want to weigh in on single-mbr llc entity category?)

Reply by Deborah Breedlove on 7/17/13 12:15pm
Msg #477143

SL has it wrong. Individuals are generally not exempt from backup withholding, and should not check the Exempt Payee box. The instructions on the W-9 include a list of payees who are exempt by definition, and we are not one of them (unless a corporation).

As independent contractors, we may be subject to backup withholding if we refuse to provide our tax ID#. If we provide SL a correct and complete W-9, we are not subject to backup withholding.

Reply by John Tennant on 7/17/13 12:57pm
Msg #477156

I use an EIN, and a Fictitious Business Name for tax purposes. I then am not subject to backup withholding under any circumstances.

JMHO

Reply by MW/VA on 7/17/13 1:37pm
Msg #477165

Must be why some business owners think they are exempt

from paying taxes (joking) :-) LOL