Private Homeowner sent me W-9 Form

[TomandTom]

Ok,

Long story short. I finished an installation for a homeowner a couple weeks ago. been waiting for payment in the mail ever since. Last night I get an email from them and a PDF W-9 IRS form to fill out and return, before they'll send payment. Apparently they are wanting to pay me through their "company" account. The company they own is simply called "The ****** Group". which is the name of the financial planning business they run. I did not contract with their business. I contracted with them as private homeowners. Although today I did notice a partial payment they gave me some weeks ago was made out from their business account. At the time I didn't notice and just deposited the check in my bank account. I'm a little miffed, only because I did extra work not called for in the estimate and they are crying about paying me the "upcharge" of $250 on a $3,000 job and now they sent me a W-9 when I didn't contract with a company or business. I've never had this happen with a homeowner before. What say you guys? Should I just fill it out and send it back and be done with it or should I tell them I didn't contract the work through their business and there is no need to provide a W-9 to a homeowner?

The contract clearly states the estimate was for the homeowers. Only their name and mine appear.

[koihito]

A W9 just gives them the info they need to send you a 1099, it shouldn't effect you in any way, unless you fudge on your taxes

So... it seems they ARE likely fudging on their taxes and the REAL question is are you willing to go to war over it?

[dhagin]

You a licensed contractor? A little more info in your profile might help here...

Have you talked to your accountant?

[TomandTom]

Dana,

I didn't even know I had a profile! lol. Will fill it out asap.

Yes, I'm licensed in Ohio. I even pay my taxes I fill out W-9's all the time, but never for a homeowner. I'm just irked that these people are holding up payment and made no mention of doing work for their "company" before last night and of course the $250 (for 8 hours work I might add!) charge they are crying about. I guess it's a matter of principle. My accountant is away, but I did speak to his partner (his sister) and she said, "Ahh.. I see". I took that to mean she's implying they (the homeowners) are pulling a fast one on the IRS. In any event, she said it's probably easier to just send it back and get paid, but that legally I'm not required to if the work was done for a homeowner.

[evan1968]

They are having work done at the house and charging it off to the business. If you are going along with it then i would redo the contract showing the business as the client.
After that its up to them how they show it as a write off.

[dhagin]

Go here to change your profile.

http://www.johnbridge.com/vbulletin/usercp.php

You think they'll pay what the contract says they owe? If so, sign & send it back and be done with it.

[jcsa]

My suggestion is if you are paying your share of taxes as income it is no big deal to sign and send back. The issue i see is they are charging this job to their business when in fact the work is being done on their residence. The IRS and comptroller may not like it. This is the avenue that the comptroller and IRS take to make sure those taxes are being properly paid. I had a sales tax audit about a year ago. After it was completed and not owing any additional money, i asked the agent why me? She said that someone had given a client a check on their business that was incorrect, and we had done some work for them that was correct, and they were checking on us. Anytime a business check is written for personal use it is a vehicle for them to pursue.

In this particular case i would sign it finish the job and go on. Let the governmental agencies do their job. If you make a big deal of it they may try to stiff you for more. Later on you can call as a unidentified concerned citizen and call the agencies involved to investigate.

[Levi the Tile Guy]

Unless you were planning on not paying taxes on this job, I wouldn't worry about it. You did work for them if they want a w-9 give it to them. INO it isn't your concern what they do on their taxes.

[Todd Stull]

Wait to hear back from your accountant. The contract is not in their company name and they are not General Contractors. It shouldn't matter on your end of things if you are paying the taxes but if they get audited by the IRS then there could be some problems on your part...

[custombuilt]

There won't be a problem as long as you were planning on paying taxes. It is quite possible that they claim a percentage of their home as there office ect for business use and therefore are legally allowed to write off that same percentage of improvements.

[koihito]

Valid point Jason, and here we are all willing to assume the worst...

[tiletime56]

Not an issue, anyone even a homeowner has the right to issue a 1099 for work done $600.00 and over

[ob1kanobee]

Hey if someone can figure out a way to beat the system, more power to them. Just worry about your taxes. If they are doing something wrong, let them deal with it.

[TomandTom]

tiletime56: "Not an issue, anyone even a homeowner has the right to issue a 1099 for work done $600.00 and over"

You are mistaking. The whole over $600 thing is no longer the law and it actually never went into affect. Also this was only for business, nothing to do with private citizens. A W-9 is a withholding form requested from one business for the other. A homeowner has no need and certainly not right to request that information. The forms are for the business records and don't ever get sent to the IRS unless the business filling it out indicates that have IRS withholdings.

[ob1kanobee]

Wait a minute. Are you saying a home owner is asking for this information such as your tax ID number or social sec. number?

Unless there is some 'ongoing' business relationship here, this doesn't smell right to me.