How to Fill Out a W-9 for a Non-Profit Corp

By Terry Masters

The Internal Revenue Service expects taxpayers to report all income earned every year. Instead of relying on taxpayers to self-report, however, the agency has established a dual-reporting system where the entity making payments also reports on the amounts paid out. This way, the reporting system has an automatic check built in that ensures that no one can hide income from the IRS. Payers need specific information to make an accurate report to the agency. Form W-9, Request for Taxpayer's Identification Number and Certification, is designed to provide the payer with the information it needs. Whenever it hires an independent contractor or third party entity, such as a nonprofit, it should request a completed version of this form from the party. The payer then keeps the form on file and uses the information on it at year-end to make its report to the IRS.

The Internal Revenue Service expects taxpayers to report all income earned every year. Instead of relying on taxpayers to self-report, however, the agency has established a dual-reporting system where the entity making payments also reports on the amounts paid out. This way, the reporting system has an automatic check built in that ensures that no one can hide income from the IRS. Payers need specific information to make an accurate report to the agency. Form W-9, Request for Taxpayer's Identification Number and Certification, is designed to provide the payer with the information it needs. Whenever it hires an independent contractor or third party entity, such as a nonprofit, it should request a completed version of this form from the party. The payer then keeps the form on file and uses the information on it at year-end to make its report to the IRS.

Step 1

Place the nonprofit's official name and address in the proper places at the top of the W-9 form, not the name or address of the person filing out the form. Leave the space marked “DBA” blank unless the nonprofit is operating under a registered trade name.

Ready to form a nonprofit? Get Started Now

Step 2

Check the “C corporation” box in the section that asks for the entity type. All nonprofits are corporations. Alternatively, you could check the “Other” box and write in “nonprofit corporation.” Both methods are valid.

Step 3

Indicate the type of income received in the next section. The applicable choices are “Other Income” and “Non-employee Compensation.” Choose “Other Income” if the payment expected will relate to something other than services rendered by the organization, such as lottery winnings. Otherwise, check “Non-employee Compensation.”

Step 4

Provide the nonprofit's employer identification number, or EIN, in the “Taxpayer Identification Number” section. The EIN is the number the nonprofit uses to file its taxes, not the Social Security number of the person filing out the form.

Step 5

Sign and date the certification section of the form. This section establishes that you are providing the requester with the correct taxpayer identification information to allow it to make an accurate report of payments to the IRS. Give the form to the entity requesting it.

Ready to form a nonprofit? Get Started Now
Can an Income Be Transferred From a 1099 to an S-Corp?

References

Resources

Related articles

How to Find a Company's EIN

An Employer Identification Number for a business entity is analogous to a Social Security number for an individual. The IRS uses EINs to identify businesses and track their financial data. It's relatively easy to find a company's EIN if the company is a non-profit organization or if the company's stock is publicly traded.

How to Change the Name of an LLC With the IRS

A limited liability company, or LLC, is a form of business association that combines the pass-through taxation and flexibility of a partnership with the limited liability of a corporation. The Internal Revenue Service does not recognize LLCs for the purposes of federal taxation, instead classifying them as a corporation, sole proprietorship or partnership. If you have changed the name of your LLC, reporting your name change to the Internal Revenue Service generally only requires indicating this on the company’s yearly tax return.

How to Fill Out a W9 for a Sole Proprietor

If you own and operate a business and choose to run it as a sole proprietorship rather than creating a separate taxpaying entity for it, such as a corporation, the IRS will consider you to be self-employed. As a result, you will report all income you earn as a sole proprietor on your personal tax return – regardless of whether or not you were required to furnish your clients with W-9 forms.

Doing the right thing has never been easier.

Related articles

How to Tell the IRS If a Corporation Moved States

The Internal Revenue Service requires corporations to keep the agency informed of a valid mailing address where it can ...

Am I Required to Fill Out a W-9 as a Sole Proprietor?

As the tax filing deadline looms each year, taxpayers begin to compile the relevant information to file income taxes. ...

How to File a W-9 for an LLC

One of the major advantages of a limited liability company is that an LLC has pass-through taxation. Unlike a ...

How to Fill Out an SS-4 for a Special Needs Trust

A special needs trust is used to provide for the needs of an individual with a disability. It ensures that government ...

Browse by category
Ready to Begin? GET STARTED