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Requiring Taxpayer Identification Numbers for All Contractors
The NASE is working hard to make certain that new, burdensome tax regulations are not introduced by Congress and the Administration this year. Legislators are currently debating proposals to increase tax compliance and recover funds from our nation’s tax gap. These recommendations would substantially increase information reporting and compliance requirements which are likely to be disproportionately harmful to the micro-business and self-employed communities.
One recommendation being debated by legislators is requiring a contractor to furnish to the business (on Form W-9) the contractor’s certified Taxpayer Identification Number (TIN). The business would then be required to verify the contractor’s TIN with the IRS, which would be authorized to disclose for this purpose only, whether the certified TIN-name combination matches the IRS records. If the contractor fails to furnish an accurate certified TIN, the business would be required to withhold a flat rate percentage of gross payments to that contractor.
The burden would be placed on the business to verify the TIN-name match prior to utilizing the contractor’s services. The IRS would be required to create a new verification system for businesses. However, no details have yet been furnished to determine if the system would be via the internet, via phone or via mail.
What are your concerns with this recommendation? How might it affect your business? Share your perspective on this proposal with the NASE and help us educate your legislators.
Simply fill out the form below and the NASE will forward your response on to your legislators, demonstrating that the self-employed believe that efforts to increase tax compliance must be fair and reasonable.
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Member Number
First Name
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Last Name
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Business Name
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We need your home address because it determines your legislative district.
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Have you ever done business as an independent contractor?
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How often have you utilized independent contractors in your business?
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What is your opinion on requiring all contractors to utilize Taxpayer Identification Numbers (TIN)? Please explain why you feel this way.
What is your opinion on requiring all businesses utilizing contractors to obtain and verify their Taxpayer Identification Numbers (TIN)? Please explain why you feel this way.
What affects might this proposed regulation have on your business?
If this regulation became law, do you think it will increase tax compliance?
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I give permission to share my micro-business story with Congress.
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I give permission to share my micro-business story with the media.
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I am willing to speak with legislators or the media about this issue.
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You may contact me for more information.
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