How to Fill Out Form W-9 for a Nonprofit – As a nonprofit organization, it may be necessary to fill out the Form W-9 in certain circumstances. This form is used to provide your taxpayer identification number (TIN) and accompanying information to another organization that needs to file an information return with the IRS using said number. There are several reasons that an organization may need your TIN, including the reporting of payments, real estate transactions, mortgage payments, property acquisitions or abandonments, debt cancellations, and contributions to an individual retirement account (IRA).
The Form W-9 for nonprofits is typically only required if the total value of the transaction in question exceeds $600 over the course of the year. When the requesting organization receives your completed Form W-9, it uses it to file the Form 1099-MISC, which documents the total monetary amount paid. The Form W-9 is not filed with the IRS; it is simply a tool for obtaining information as part of the overall tax filing process.
If a legitimate request for your TIN is made and you refuse to provide it through the Form W-9, the requester may be required to withhold taxes from your pay at a rate of 24%. In addition, the requester may face fines if they do not obtain the Form W-9 from you, so they may be highly motivated to do so. It is important to consider these consequences when determining whether to fill out the Form W-9 for your nonprofit organization.
The following are step-by-step instructions How to Fill Out Form W-9 for a Nonprofit :
Step 1: In Box 1, enter the legal name of your nonprofit as it was registered with the IRS when you received your EIN or TIN.
Step 2: If your organization is legally operating under a different name, known as a “doing business as” (DBA) name, enter that name in Box 2. Otherwise, leave Box 2 blank.
Step 3: In Box 3, check the box marked “other” and write “Nonprofit corporation exempt under IRS Code Section ___.” Fill in the blank with the code section number that corresponds to the type of tax exemption your organization has, such as 501(c)(3).
Step 4: If your organization is tax-exempt under 501(c), leave Box 4 blank.
Steps 5 and 6: In Box 5, provide the organization’s street address, including the street number, street name, and interior number. In Box 6, provide the city, state, and zip code for the organization. There is also an unnumbered box where you can optionally provide the requester’s name and address.
Step 7: In Box 7, you have the option of listing any account numbers that your employer may need. However, this is optional.
Step 8: In Box 8, enter your IRS-issued EIN. As a nonprofit organization, you must have an EIN number, so you should always use this section and leave the Social Security number box empty.
Step 9: In the section labeled “Part II,” provide your signature and the date to certify that the information you have provided is accurate, you are not subject to backup withholding, you are a U.S. citizen or U.S. person, and any codes entered are correct.
Step 10: Submit the completed Form W-9 to the entity that requested it. Do not send the form to the IRS.