What Is a W-9 Form for a Landlord?
Understand how landlords use Form W-9 to collect essential vendor data, fulfill tax reporting obligations, and maintain compliant business records.
Form W-9, Request for Taxpayer Identification Number and Certification, is an Internal Revenue Service (IRS) document used to gather a person’s or entity’s name, address, and Taxpayer Identification Number (TIN). For landlords who operate their rental activity as a business, this form is a standard tool for collecting information required for tax compliance. The form ensures the landlord has accurate vendor details for any necessary reporting to the IRS.
When a Landlord Must Request a W-9
A landlord must request a Form W-9 when their payment activity for services triggers an IRS reporting requirement. If a landlord pays a service provider $600 or more during a calendar year for work related to the rental property, a report must be filed with the IRS. This rule applies to payments for services, not for goods.
This rule covers many common rental property expenses. Payments to independent contractors for services from lawyers, accountants, or tradespeople fall under this requirement. Examples of tradespeople include:
- Plumbers
- Electricians
- Painters
- Landscapers
The W-9 is the mechanism used to collect the vendor’s information for tax reporting.
It is advisable to request a completed Form W-9 from a vendor before making any payment. This prevents difficulties in obtaining the information later, especially near tax filing deadlines. Getting a W-9 at the start of a new vendor relationship ensures the landlord is prepared, even if the total payments for the year do not reach the $600 threshold.
Payments made to C or S corporations are generally exempt from this reporting requirement, though a W-9 can still be used to confirm a vendor’s corporate status. A landlord may also be asked to provide a W-9. This can occur when renting to a commercial tenant or when receiving housing assistance payments from a government agency.
Information Required on Form W-9
The person or entity receiving payment is responsible for completing Form W-9. The first line requires the legal name of the individual or business as it appears on their tax return. If the vendor operates under a business name, that is entered on the second line.
The vendor must indicate their federal tax classification, such as individual, sole proprietor, C Corporation, S Corporation, or Partnership. This classification helps the landlord determine if a 1099 form is necessary. The form also requires the vendor’s full mailing address.
The form requires the vendor’s Taxpayer Identification Number (TIN). For an individual or sole proprietorship, this is their Social Security Number (SSN). For other business entities like corporations or partnerships, it is their Employer Identification Number (EIN).
By signing and dating the form, the payee certifies under penalty of perjury that the TIN provided is correct and they are not subject to backup withholding. This signature makes the W-9 a formal, certified document. Landlords can download the current version of Form W-9 directly from the IRS website.
Using W-9 Information for Tax Reporting
The landlord uses the information from a completed W-9 for tax reporting. The vendor’s name, address, and TIN are transferred to Form 1099-NEC, Nonemployee Compensation. This form reports the total amount of $600 or more paid to a single vendor for services during the year.
The Form W-9 itself is not sent to the IRS; instead, the landlord must keep the completed W-9 in their records. This document serves as evidence of due diligence to obtain correct taxpayer information from the vendor. Retaining these forms can help avoid penalties related to incorrect information returns.
The landlord must file a copy of Form 1099-NEC with the IRS and provide a copy to the vendor. The deadline for both actions is January 31 of the year following the payments. This ensures both the IRS and the vendor have a record of the payments for their tax filings.