
How to decline sending a W9 to client? - Apane101
So, I&#x27;ve been working with a client for the last 8 months now. And I built their entire web application from the ground up. I also outsourced some of the work because of the scale.<p>Anyhow, they&#x27;ve just asked me to send over a W9 and they will send over a 1099. However, I&#x27;d rather not go that route because I&#x27;m going to have to track down my outsourced workers and get them to send me their W9&#x27;s and it&#x27;s just a nightmare.<p>How can I decline their request?<p>Cheers!
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7Figures2Commas
You seem to be confused. Refusing your client's W-9 request doesn't eliminate
your need to issue 1099s for your subcontractors.

There are potential penalties associated with each. Additionally, if you
refuse to provide the W-9 and are still doing work for your client, don't be
surprised if the client starts backup withholding.

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Apane101
All of the work is done at this point. And I am a bit confused, as I'm based
up in Canada and they're in the U.S. We don't have 1099's and W9's here from
what I understand.

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7Figures2Commas
That's a critical piece of information you omitted. It sounds like your client
is not aware of the fact that you're a Canadian citizen (?) and did not
perform work in the United States.

Sometimes companies will require that you certify that you're a foreigner
using a Form W-8BEN. If you're not able to resolve this issue with your client
by explaining your status and it's creating issues for you, you should consult
with an attorney.

It also sounds like it would be worthwhile for you to consult with an
accountant who can educate you about your obligations to your clients and your
subcontractors generally.

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Apane101
Thanks for the feedback. They're well aware that I'm located in Canada as all
of that information was outlined on the initial agreement. I'm just a bit
taken back as I've worked with other clients who have never asked for this.
It's likely that these particular clients would like to declare these
expenses/right them off to lower their taxable income, I just wish they would
have mentioned this before hand so I could have prepared for this.. The sub-
contractors are based in Europe so it's really a massive loss for me if I were
to go that route.

Also, I've already been paid in full. So at this point I have nothing to lose
really.

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alain94040
You still sound very confused about your obligations and your client's
obligations. It sounds like you expect to keep all your transactions under the
radar and not declare any of them to any tax authority. Don't.

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Apane101
Just for this project in particular because of the complexity with sub-
contractors. All other ones there isn't any issues because they are in-house.

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saurik
You don't get to pick and choose which transactions you report to the
government and which you don't based on how hard it is for you to bother with
the reporting.

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tannk11001
Just talk to them. Standard Operating Procedure would be for them to file a
1099, which generally requires a W9 that provides your information.

The person asking for a W9 from you is probably not familiar with how this
changes when working with workers outside the US. You can explain that you
won't be able to complete a W9 because they're only for US citizens and
residents and see where the conversation goes from there.

They still need to declare and classify their expense, so may need you to
complete some other paperwork, but it doesn't really effect anything about
your own tax obligations or filing requirements. Don't worry about it.

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debacle
You will be financially penalized if your client has to file a 1099 without
your tax ID number(s). You are required by law to provide them with your tax
ID.

Edit: This is also how consulting and contracting works. If you've never
requested or sent someone an W-9/1099 before, get used to it.

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Apane101
How so? They don't have my SIN number or anything. Please elaborate. I'm open
to all suggestions here.

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debacle
Either you report that income on your taxes via 1099 and then the IRS goes to
the company that created the 1099 and asks them why the 1099 doesn't have a
TIN or you don't report the income on your taxes and the IRS finds out and
fines you for tax evasion.

Edit: I see that you are Canadian. Unfortunately for your aspirations of tax
evasion, the US and Canada have a very friendly information sharing
relationship.

~~~
Apane101
Look, I'm not aspiring to do what you are suggesting. I'm simply inquiring
more into the process. Also, if they don't have my information how will they
find out who's who? There are at least 100 people in my city with the same
name. I'm geniuinely curious as to how this whole thing works..

