what is an exempt payee code on w9

<> As a non-profit organization are we legally required to request/get W-9s from all vendors and issue 1099s? Shouldnt be a worry, though. W4 is used for employees, not W9. For 3 years, the county shared half the site expenses (web hosting and SSL certificate) and paid for their own domain name. The information presented or linked to on this website is not legal advice and your viewing of this website does not create an attorney/client relationship. Certain payees, whose income is not subject to backup withholding, are considered exempt payees as defined in the W-9 instructions. I dont think so. Organizations that fall under this exemption must enter 1 as per W9 instructions. A payee's agent can be an investment advisor (corporation, partnership, or individual) or an introducing broker. Payees that are exempt from reporting under the Foreign Account Tax Compliance Act (FATCA) might need to enter a code in the Exemption from FATCA reporting code box. Form W-9 asks for the taxpayer's name, tax identification number, address, and specific information about you or your company. In that case, you may rely on the Form W-9 for purposes of obtaining the payees TIN, but you must treat the payee as non-exempt. Legally, no. When you have to fill out the formlike in situation #1 in the section above. Special Considerations When Filing Form W-9, What Is a W-9 Form? Browse related questions An investment advisor must be registered with the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. Barter exchange transactions and patronage dividends. Enter your organizations mailing address in address lines 1 and 2. Certain payees are exempt from backup withholding and should "enter an exempt payee code on Form W-9". She has years of experience helping arts nonprofits with their fundraising messaging and strategy. To qualify as exempt for W-9 purposes, the payee must be one of the following: Any IRA, an organization exempt from tax per section 501 (a), or a custodial account per section 403 (b) (7) if said account meets the criteria of section 401 (f) (2) Corporation Financial institution The U.S. government or its associated third parties