Question 1

What is a W-9 form?

Accepted Answer

W-9 form: the Request for Taxpayer Identification Number and Certification. Filed by: U.S. persons (individuals, businesses, and other entities) to provide: their taxpayer identification number (SSN or EIN), their legal name and business name, their entity type (individual, corporation, LLC, partnership, or trust), and certification (that the TIN is correct and the person is not subject to backup withholding). In RE: the W-9 is used at closing when: the seller provides their TIN for IRS reporting (Form 1099-S: proceeds from real estate transactions), and service providers (agents, attorneys, and contractors) provide their TINs for payment reporting.

Question 2

When is a W-9 required in Florida real estate transactions?

Accepted Answer

Required when: the seller provides their TIN to the closing agent (for Form 1099-S reporting: the IRS requires reporting of gross proceeds from real estate transactions), the landlord provides their TIN to the tenant (for rent reporting: if the tenant pays $600 or more in rent per year), independent contractors provide their TIN to the payor (for Form 1099-NEC reporting: real estate agents, attorneys, inspectors, and other service providers), and investors provide their TIN to the entity (for K-1 reporting: partnership, LLC, or S corporation distributions). The W-9: must be completed accurately (incorrect TINs can result in: backup withholding at 24% and IRS penalties).

Question 3

What happens if a W-9 is not provided in a Florida real estate closing?

Accepted Answer

Not provided: backup withholding (the closing agent must withhold 24% of the payment and remit it to the IRS), IRS penalties (the payor may be penalized for: failure to obtain a TIN, failure to report, and failure to withhold), and delayed closing (the closing may be delayed while the seller or service provider obtains or corrects their W-9). The closing agent: typically requests the W-9 well before closing to avoid delays. If the seller refuses: the closing agent must comply with the backup withholding requirements regardless.

W-9 Form

W-9 Form in FL Real Estate

What It Provides

When Required

If Not Provided

Related Terms

Barnes Walker Real Estate

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