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Form W-9 and backup withholding records
Vendor onboarding is easier when names and taxpayer identification details are resolved before reporting season. Keep W-9 collection, IRS notices and withholding decisions in a secure record tied to the payee.
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General information, not legal or tax advice.
Collect the identity information behind vendor payments
Form W-9 supplies the correct taxpayer identification number to the person required to file an information return. As a bookkeeping practice, request it during onboarding and compare the name with the vendor record. Keep access limited to people who need the information for payment and reporting.
Sources: IRS - About Form W-9 (round-1 fact)
Recognize when missing information needs action
IRS guidance sets backup withholding at 24% and directs payers to begin immediately on reportable payments when a payee refuses or neglects to provide a TIN. Backup withholding does not apply to wages. Bring missing-TIN situations to the responsible payroll or tax adviser before releasing the next affected payment.
Sources: IRS - Backup Withholding; IRS Pub 1281 (Rev. 12-2023); IRS Pub 15 (2026)
Calendar the response to a name-and-TIN notice
For a CP2100 or CP2100A notice, the IRS describes a B Notice deadline of 15 business days from the notice date or receipt date, whichever is later. A repeated notice can require different validation. Retain the envelope, receipt date and response history so the adviser can apply the correct process.
Sources: IRS Pub 1281 (Rev. 12-2023)
Validate names without confusing reporting thresholds
IRS TIN Matching lets eligible payers and authorized agents validate name/TIN combinations before information returns are submitted. For the specified payments made in 2026, IRS guidance raises the reporting threshold to $2,000. Keep those federal rules separate from other contractor reporting duties and retain the matching result securely.
Sources: IRS - TIN Matching; IRS Pub 15 (2026)
Sources: collect the identity information behind vendor payments
Related records and decisions
Keep vendor reporting information complete
Tidwell helps organize payroll inputs, review records and support payroll reporting. We coordinate tax questions with your CPA and leave employment-law interpretation with your legal adviser.