Your company should require your vendors submit an IRS W-9 form as part of setting up the vendor in your accounting system and before you make payment to the vendor. Once they’ve done that, does the W-9 form expire?
Updating the W-9 Form
Consistent with the language on the W-9 form, vendors should provide you with an updated W-9 form whenever any of the information on the form changes. A W-9 form with current information does not expire nor is there any IRS requirement for vendors to resubmit the form.
IRS Update Instructions
The W-9 form provides the following instructions to the vendor filling out the W-9 form:
“You must provide updated information to any person to whom you claimed to be an exempt payee if you are no longer an exempt payee and anticipate receiving reportable payments in the future from this person. For example, you may need to provide updated information if you are a C corporation that elects to be an S corporation, or if you no longer are tax exempt. In addition, you must furnish a new Form W-9 if the name or TIN changes for the account; for example, if the grantor of a grantor trust dies.”
IRS W-9 Form
Go to the IRS website to view the W-9 form and instructions.
Frequency of Updated W-9 Forms
Some companies require an updated W-9 form annually, while others require it every three years, or at a different frequency. The important thing is that your company has current information about each vendor. Systematically requiring an updated W-9 form helps to ensure the information is still current.
Your Company’s Policy
Your company’s internal policies should be specific as to how often you request and require your vendors to submit a new W-9 form. Review your policies to ensure you address this subject and that you have a systematized process to request updated W-9 forms consistent with the frequency you have determined to be appropriate in your policies.
We Can Help You
If you would like help in evaluating how frequently to require updated W-9 forms or developing a system for monitoring and requesting the updated forms, please contact me. I’d be glad to work with you on this or other accounting system issues.