IRS Form W-9 and 1099 Income Reporting Information
calmus, 07/05
W-9 forms are used to collect taxpayer TIN’s (tax identification numbers). TIN’s are used to report
qualifying income payments annually to the IRS on form 1099. The submitter certifies with a
signature that he or she has submitted the correct TIN and taxable status. We must be reasonably
certain that the W-9 was received from the submitter or authorized agent.
Many categories of payments are exempt from 1099 income tax reporting. These include:
Payments made to:
Corporations
Tax exempt organizations
US and State governments
District of Columbia
Payment card transactions if payee is in MCC not requiring reporting
Payments for:
Merchandise, telegrams, telephone, freight, storage
Rent to real estate agents
Wages
Travel allowances
Scholarships (use a W-2)
Employee business expenses
Payments totaling less than $600 in a calendar year
Expense reimbursements for outside consultants may be exempted from 1099 reporting by
Accounts Payable. This is done only when documentation is provided that complies with DU’s
reimbursement policies for staff. Specifically, original invoices and receipts must be provided.
The matrix below describes common payment scenarios and W-9 and 1099 reporting requirements.
Payee:
Students
Type of Payment:
Reimbursement of Expenses
Stipends, Fellowships,
Scholarships
Gifts and Awards
Independent Consulting
W-9
Required?
No
No
1099 Reporting
No
No
No
Yes
No
Yes
Faculty & Staff
Reimbursement of Expenses
Gifts and Awards
Grants
Independent Consulting
No
No
No
Yes
No
No
No
Yes
Outside
Vendors
Payments for Merchandise
Yes
No
Medical and Health Payments
Attorney Fees
Payment for Services
Yes
Yes
Yes
Payments for Services
Yes
Reimbursement of Expenses
Yes
Yes
Yes
Yes, unless the vendor is a
corporation, a non-profit
corporation, or a US, State,
or local government entity
Yes, unless the vendor is a
corporation, a non-profit
corporation, or a US, State,
or local government entity
Yes, unless documentation
Independent
Consultants
Payee:
Type of Payment:
complies with DU policies
1099 Reporting
Medical and Health Payments
Attorney Fees
W-9
Required?
Yes
Yes
Affiliates
Honorariums
Payments for Services
Reimbursement of Expenses
Yes
Yes
Yes
Yes
Yes
Yes, unless documentation
complies with DU policies
Foreign
Service
Providers
(Individuals)
Foreign Services
No
No
Domestic Services
W-8 BEN
Req’d
Yes
Yes
30% withholding applies,
unless exempted or reduced
by treaty as listed on form
8233