W9 request from third-party

[rrazzorr]

I rented out my timeshare through a third-party company that put their clients name on the unit last year. They are requesting that I provide them with w9 form “per IRS regulations”.
I plan to disclose my earning during the time when I file taxes this year but I am not quite sure why I need to provide a w9 to a third-party who rented out my unit to someone else.
If someone can chime-in with additional knowledge, I’d appreciate it.

 

[dioxide45]

They should have obtained a W9 prior to making the payment to you. They are required to report money they paid to you to the IRS if it is over $600 in a year. Were you paid by check or some other direct transfer? Or was it Paypal or another payment processing company?

 

[rrazzorr]

They should have obtained a W9 prior to making the payment to you. They are required to report money they paid to you to the IRS if it is over $600 in a year. Were you paid by check or some other direct transfer? Or was it Paypal or another payment processing company?

eCheck, over $600; I’m somewhat hesitating disclosing my SS number to them.

 

[dioxide45]

eCheck, over $600; I’m somewhat hesitating disclosing my SS number to them.

eCheck is the same as a check. This is standard business practice for any legitimate company in the US. Which company is it that paid you?

 

[rrazzorr]

Thanks. Sound reasonable. Resort Rentals International (rrirentals .com)
So, you think this is a legit request?

 

[Patri]

Leave off your SS number.

 

[bnoble]

I do. They have to report the payment if it is over $600, and they need your taxpayer ID number to do it. For an individual, that’s the SSN.

 

[wmgjr]

eCheck, over $600; I’m somewhat hesitating disclosing my SS number to them.

CPA here.
It's a requirement as they are a pass through rental company but I understand your hesitation
Request an EIN from IRS, takes 15 minutes and it's instantaneous.

 

[rrazzorr]

CPA here.
It's a requirement as they are a pass through rental company but I understand your hesitation
Request an EIN from IRS, takes 15 minutes and it's instantaneous.

Thanks for clarifying, I may end up doing just that. Really hesitating providing my ssn.

 

[dioxide45]

Thanks. Sound reasonable. Resort Rentals International (rrirentals .com)
So, you think this is a legit request?

I don't know the company specifically, but they look like a legitimate rental outfit and they paid you money. So the request would be legitimate. They are required to report the money paid to you to the IRS. If you don't and you plan to rent through them in the future, they will be required to take mandatory withholding from the money they send to you. Thus why they really should have been asking for this before they paid you.

That said, you can certainly go the TIN route, but this situation and a W9 is a legitimate reason to ask for your SSN. The risk is pretty low here. People share their SSN all the time for this very purpose. TINs are traditionally for those not eligible to obtain a SSN. Personally, I wouldn't bother with the TIN.