Corporations, companies, etc. – is a business asking for a W-9 for a donation

However, this requirement is formal due to the inability to control the business activities outside the US, especially taking into account laws on maintaining bank secrets. In the US, you can start a business by buying a license for a certain type of activity that replaces many local taxes and fees (for example, in one of the cities of California, it is only $ 15 per year for sales of less than $ 15 thousand). 

General Aspects

In the United States, the practice of providing so-called “first year bonus”, which applies to small enterprises operating the first year. Such tax incentives often reach 50%, and the government independently repays about 90% of loans received by small businesses in commercial banks. However, even the smallest company attracting wage workers is a business asking for a W-9 for a donation.

Types of payments that may be exempted from additional withholding

Payment Description Transaction is exempt from additional deduction, if the recipients are
Interest payments and dividends. All exempt payees except specified in clause 7.
Brokerage. Exempted payees 1 to 4 and 6 to 11 and all C corporations. S corporations should not indicate code to avoid additional retention (applies only to transactions with securities purchased before 2012).
Barter transactions and patronage dividends (dividend paid in proportion to purchases). Payees 1 to 4 are exempted.
Information about payments in excess of 600 US dollars must be indicated in W-9 forms to print, as well as information on sales in excess of 5,000 US dollars is subject to indication. As a rule, payees 1 to 5 are exempted.
Settlement of credit card debt or network transactions with third parties. Payees 1 to 4 are exempted.

Interaction with business tax forms W-9

In order to confirm to the retention agent that you are a U.S. resident or a U.S. resident, you must complete business to business W-9 form. For joint accounts, the person whose TIN is listed in Part 1 must sign this form. If a person is not registered as a legal entity, then the party specified in the “Name” clause is a signatory. By this document the applicant assumes responsibility for the provision of false information and confirms that:

  • TIN of the payee is true;
  • The payee is not subject to additional deduction due to the non-inclusion in the declaration of received interest income or dividend income;
  • The payee is a US citizen or has a different US person status;
  • The payee is exempted from FATCA reporting.

If any data in the business tax forms W-9 is out of date or lose its relevance, you must fill out a new form within 30 days. If you have any difficulties with how to fill out a W-9 for business, you can contact your tax agent from IRS for help.