A gallery carrying my work on consignment has asked that I fill out
a W-9 form containing my Social Security number. I’ve not encountered
this before. Has anyone else? Is a W-9 required in this situation?
Thanks.
Emie Stewart
I haven’t done consignment in way over 20 years, but way back no one
ever asked for this.
Sharon Perdasofpy
Emie
The gallery does need this to 1099 you at years end. I believe the
amount is 600.00 that they pay to you has to be reported to the IRS.
It may have gone up to 900.00 but I have to check on this. In turn it
is a check and balance of your incomes for the year.
best new year and happiest holidays
Robin
Yes, it’s appropriate. After the shop pays you, it will have to send
you ( with a copy to the IRS) a Form 1099. The W-9 that you fill out
gives the shop the that they need to fill out the 1099
(ie your Federal ID number or social security number).
Emie,
I am a retired accountant and, YES, you need fill out a Form W-9 for
the g allery. The W-9 provides the gallery owner with the
that they will need to report to the IRS with their
annualtax return. If you sell $600 or more in goods, i.e. jewelry,
through the gallery, t hen the gallery owner has to reportit to the
IRS and and has to provi de you with a Form 1099. Just as they would
provide an employee with a W-2 at the end of the year,they need to
provide non-employees with a 1099 (if their sales exceed $600).
You will probably get a number of responses to your question from
people saying that they never had to fill one out but the problem is
that many small business owners are somewhat ignorant about the IRS
regulations. If yousell more than $600.00 in goods, i.e. jewelry then
the gall ery owner must report it to the IRS and must provide you
with a 1099.
There is no reason to hesitate if a business ownerasks you to fill
ou t a W-9, they are simply one of the more informed business owners
and are doing what they are supposed to do to satisfy the IRS regs.
Vicki Stone
"If you sell $600 or more in goods, i.e. jewelry, through the
gallery, then the gallery owner has to report it to theIRS and and
has to provide you with a Form 1099. " This is incorrect. A business
must only report to the IRS payments it has made for SERVICES, not
merchandise. I am also a retired accountant and find that most people
get this wrong. What a tremendous waste of time at the most
inconvenient time of the year to be worrying about sending out
1099’s to every person you have paid more than $600 to. Google IRS
1099 and read the first page of the instructions - they’re pretty
clear. Brenda (Florida)