Instructions on how to fill out W-9 for nonprofit are available on the IRS website. You will basically need to enter details, like your organization's name and address, type of entity, EIN, and the type of income.

What Is Form W-9?

All taxpayers must report their annual income to the Internal Revenue Service (IRS). You are required to withhold taxes while making certain types of payments. You must deposit the collected taxes with the IRS within the stipulated time. In order to ensure compliance, the IRS has set up a dual-reporting system wherein you must report the information relating to the payments made and the amounts of tax withheld.

You will need certain information to prepare and submit an informational report to the IRS. Form W-9, officially known as Request for Taxpayer's Identification Number and Certification, provides you (the payer) with this information.

Whenever you hire a nonprofit organization, an independent contractor, or any other third party, you should ask for a duly filled out W-9 form. You should keep all these forms on file and use their information while preparing the informational report for submission to the IRS at the end of the accounting year.

How to Fill Out Form W-9 for Nonprofits

Although nonprofit corporations may be exempt from taxes, they must complete the W-9 form while receiving certain payments. Here is how you should fill it out:

  • Name: Enter the name of your nonprofit corporation as it appears in your Articles of Incorporation.
  • Business Name: If your organization operates under a name different from its registered name, enter that name here.
  • DBA: Leave it blank unless you are conducting business under a registered trade name.
  • Entity Type: All nonprofit organizations are corporations. Hence, check the box corresponding to C-corporation. Alternatively, you can also choose “Other” in the entity type and write “nonprofit corporation” in the provided space.
  • Exempt Payee Code: If you are a charitable organization, you can leave this section blank. Others should consult their tax adviser for the appropriate code.
  • Federal Tax Classification: Check the “Other” box and write something like “nonprofit corporation exempt under section 501(c)(3) of the IRS.”
  • Type of income: Check “Other Income” if the income does not relate to services of your organization. For instance, lottery winnings would come under “other income.” For all other income, you should choose “Non-employee Compensation.”
  • Address: Enter the mailing address of your organization.
  • Taxpayer Identification Number: Enter your Employer Identification Number (EIN) issued by the IRS. If you do not have an EIN, you can apply for it online or by filing Form SS-4 with the IRS. If you've applied for an EIN but haven't received it yet, write something like “applied for” in this space.
  • Social Security Number: Leave it blank.
  • Certification: In this section, you certify that the information provided in the form is true and correct to the best of your information. Put your signature and enter the date.

Next Step After Filling Out Form W-9

After you complete the W-9 form, issue it to the business entity that asked for it. You need not file this form with the IRS.

Issuing Form W-9 is an important taxation procedure. If your nonprofit organization conducts business with someone that requests this form, make sure you complete it and hand over the form without delay.

Where Can You Get the W-9 Form?

  • The business entity requesting you to complete a W-9 tax form may give you a blank copy of this form.
  • Instructions for filling out W-9 forms are available on the IRS website.

The Purpose of Issuing W-9 Forms

Even though nonprofits are exempt from income tax and not subject to withholding taxes, you must fill out and issue Form W-9 to the requesting business entities. In fact, all nonprofits must submit this form in order to be eligible for the tax-exempt status. Form W-9 establishes the identity of your organization as being independent and free from the influence of any for-profit entity.

Tax Exemption for Nonprofits

  • Section 501 of the Internal Revenue Code describes the tax exemption that can be granted to nonprofit organizations.
  • According to this section, a nonprofit organization must request the tax-exempt status from the IRS; it's not granted automatically.
  • A nonprofit organization requesting the tax-exempt status must meet certain criteria to be eligible for the status. Form W-9 is an important prerequisite for considering your application.

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