How Often Do You Have to Request New W-9 Forms From Your Vendors?
Generally, a new W-9 form is sent out whenever the contractor or vendor has updated information, such as its business name, address or identification number, according to About.com. There is no requirement to send out a W-9 on a regular basis under any other circumstances.
The W-9 is sent to any new contractors or vendors providing services to a company. Legally, a company issues a W-9 when a service provider earns a minimum of $600 during the calendar year, notes About.com. A company can request that contractors fill out new W-9 forms at any time for any reason. It should be noted that a W-9 form is only issued to verified U.S. contractors. Foreign contractors working for U.S. businesses are required to fill out W-8 forms. Corporations should also not be sent a W-9 form.
Companies that use this form should read the Internal Revenue Service guidelines carefully to ensure they understand who qualifies for a W-9. For instance, a company should send this form to its lawyer for legal services over $600. The government has placed lawyers on the required list, notes Entrepreneur. Companies face penalties if they do not send out all required W-9 forms by the deadline.