TaxBandits Summer Solutions: Managing Your Vendor Information
The sun is out, the weather is great, and we’re back with another summer solution for your business!
This week, we are covering an important aspect of your year-end filing process that never gets enough attention. Vendor management.
As a business owner, you likely work with other businesses and individuals throughout the tax year in the course of operations. For example, you may make payments to other businesses for services rendered, or you may hire out work to independent contractors or freelancers.
This is an efficient way to run your business, but at the end of the year, you will likely be required to file IRS forms 1099 to report the payments made to these businesses and individuals. Then what?
Great question! Managing your vendor information is the key to smooth sailing this tax season, and the TaxBandits W-9 Manager is the ideal solution.
What is Form W-9?
W-9 Form, officially named the Request for Taxpayer Identification Number and Certification, is a document issued by the Internal Revenue Service (IRS) in the United States.
Unlike the majority of forms that the IRS, the W-9 is not meant to be filed with the IRS. This form’s sole purpose is to be used by payers to request tax information, mainly the Taxpayer Identification Number (TIN) from their payees.
Why is the Form W-9 Important?
Your first thought is probably, “Why would I ask someone to complete an IRS form that will never be filed?”. That’s a great point, however, Form W-9 gives businesses a secure option for requesting sensitive tax information, there is an option for their payee to sign the form certifying that the information provided is correct.
Modernizing your W-9 Process
Form W-9 is a helpful tool for businesses, but how can you maximize the efficiency of using this tool? Mailing and faxing paper forms back and forth is time-consuming and inconsistent, but it’s also not very safe in today’s world.
TaxBandits offers an electronic option for requesting, collecting, and storing W-9 information. The TaxBandits W-9 Manager completely streamlines your business’ W-9 process.
The TaxBandits API provides a comprehensive electronic filing solution to all service providers, enabling seamless processing of Form 1099 API & TIN Matching API.
You can request Form W-9 online from any vendor you need through TaxBandits with only their name and email address. The vendor will then receive an email from TaxBandits with a secure link to complete the form. They will be prompted to complete and e-sign the form through our secure portal.
After the vendor completes the form and provides their e-signature, they will have access to download a copy of their completed form. You will then be notified by TaxBandits that the vendor has completed and e-signed the form.
You can then review and accept the form and it will be stored safely in your TaxBandits account. TaxBandits also performs TIN Matching to ensure that the TIN your vendor provider matches what is on record with the IRS.
When it comes time to file 1099 forms for any of your vendors, you will have easy access to the accurate information you need to file for this individual or business.
Are you ready to try out our easy and accurate solution for vendor management? Create your free TaxBandits today to get started. Plus, when you create a TaxBandits account, your First 5 W-9 requests are on us!
