Dallas-Fort Worth Real Estate Investor Club

W9 for rent?

  • 20 Aug 2025 9:18 AM
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    Message # 13533628
    Paula Robertson

    Just when I think I've heard/experienced it all in this business, a tenant has a charity that "wants" to pay part of her rent for this month, but the charity wants ME to submit a W9! 

    I have never had to provide a W9 for anything but 1099 contract work, and I see no reason for this charity to have my SS number. If I had a TIN it might make sense, but either way the W9 is ultimately for income tax reporting and that's not how I account for my rental income to Uncle Sam.

    Thoughts?

    Last modified: 20 Aug 2025 9:18 AM | Paula Robertson
  • 21 Aug 2025 4:42 PM
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    Reply # 13534139 on 13533628
    Paula Robertson

    So I responded:

    "In my experience, W9s are for employers to report contractor income to the IRS. I report all my business income directly to the IRS. I do not have a Tax ID Number (TIN) for my businesses, and I decline to share my SSN for you to meet your obligation to me."

    I confirmed my understanding with a web search. 

    But would still like to hear from someone, at least Robyn...

    Thanks

    Last modified: 23 Aug 2025 4:47 PM | Paula Robertson
  • 25 Aug 2025 4:58 PM
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    Reply # 13535046 on 13533628
    Paula Robertson

    Whatever happened to group therapy?
  • 25 Aug 2025 5:26 PM
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    Reply # 13535052 on 13533628
    Terry Allen

    Hi Paula,

    I just saw your post. I'm not an attorney or CPA, but I did a search on the IRS website (with the help of ChatGPT) and it appears that if the charitable organization pays you, the landlord, directly for that portion of the rent subsidy, they are probably required to issue a 1099-MISC to you at the end of the year. As such, they would require you to complete a W-9. 

    Here are the references: 

    Situation: Charitable organization pays $600+ rent directly to landlord on behalf of tenant

    Form 1099-MISC Required? Yes

    Relevant Code / Regulation - IRC § 6041(a);   Treas. Reg. § 1.6041-1(a)(1)(i)(B);    PLR-143055-09 precedent

    You might check with Don McCartney, I'm sure he could answer your question.

    Thanks,

    Terry
  • 26 Aug 2025 8:21 AM
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    Reply # 13535200 on 13533628
    Paula Robertson

    Thanks for your response. 

    I understand how it works, but I still decline to give them my SSN. There's also the fact that this tenant gave me no indication of such a requirement until she was already 16 days late on the rent. This "contribution" was not going to cover the total rent much less late fees, and I don't take partial rent payments. 

    This is the tenants' second failure to pay rent on time in a three-month tenancy. It is looking like they misrepresented their ability to pay. They haven't earned the privilege of leniency on my part.
  • 26 Aug 2025 5:17 PM
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    Reply # 13535521 on 13533628
    Robin Carriger (Administrator)

    For what it's worth, multiple charitable and government organizations have made rent payments directly to us on behalf of various tenants over the years without requiring a W-9.  With that said, I believe the info Terry shared above is correct.
  • 27 Aug 2025 10:00 AM
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    Reply # 13535725 on 13533628
    Paula Robertson

    So how did you get around the W9 requirement?  Were those agencies just not compliant?  didn't care?  were more reasonable?  willing to bend for the sake of their donees?

    I told the tenant I'd be happy to provide a receipt of payment, but apparently that was not acceptable. 

    Thanks Robyn. P
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