My employer sent us this message:
Obama has a new tax law that requires EVERY person or Company that gets paid for a services has to fill out a W-9 form. With that said guys I need you to get me the W-9 from ALL your vendors we have bought stuff from: DVD Burner, DVD and DV tapes, Ink, anything.
I wrote the following to the person who advised my employer on this:
It is my understanding that this was standard practice prior to Obama. Is that right? Also, I have been told that companies that want tax breaks have to prove they are doing business with other companies, hence a W9. Many companies were falsifying documents saying they were doing business with another business when, in fact, they did not, yet still getting tax rebates.
And her response:
Corporations were formerly excluded from having to provide W-9’s. Individuals and businesses that were not incorporated did have to provide W-9’s. Now, it is everyone regardless if we are dealing with a corporation or not.
Is this accurate?