A signed Form W9 on file before the first payment saves you a scramble every January. For payments made in 2026, Form 1099-NEC is generally required at $2,000 or more, and the filing date is Monday, February 1, 2027.
Last updated November 4, 2026. Reviewed by Aryan Patel, founder of Senvora Group, a bookkeeping firm that supports CPA firms and business owners in the US and Canada. Our team uses this checklist when we set up contractor files for clients. This W9 collection checklist is built from the IRS About Form W9 page, the IRS Instructions for the Requester of Form W9 and the IRS Instructions for Forms 1099-MISC and 1099-NEC, all on irs.gov. Where an IRS page did not say something, we say so and tell you to check it. We do not prepare or file tax returns, so loop in your CPA on anything that is a tax call.
Key takeaways
- Ask every US contractor for a Form W9 before you pay them. The IRS pages we read do not set a deadline for asking, but waiting until January is how people end up chasing.
- For payments made in 2026, the Form 1099-NEC threshold is $2,000. For payments made before 2026 it was $600.
- The instructions say Form 1099-NEC is due January 31, and a weekend due date moves to the next business day. January 31, 2027 is a Sunday, so plan for Monday, February 1, 2027.
- Payments made by credit card or third party network are reported by the payment processor, not on Form 1099-NEC.
- If a contractor will not give a taxpayer ID, the IRS says backup withholding applies at 24 percent of reportable payments until it is fixed. Talk to your CPA before you pay.
- Do not email a full SSN or EIN over plain email. Use a secure method.
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Why a W9 collection checklist matters in November
Most 1099 pain is not the filing. It is the missing paperwork behind it. You paid a designer in March. Their address changed in June. Now it is late January and they are not answering.
Behind on your books before tax season? We review your file for free and give you a fixed quote. Get your books CPA ready before January.
The IRS About Form W9 page describes Form W9 as the way a person gives their correct taxpayer identification number to the party who has to file an information return. That is it. One page. Your job is to get it early and get it right. Our 1099 filing deadline guide covers the filing side and the penalties.
| Item | What the IRS pages say | Check before you rely on it |
|---|---|---|
| Form 1099-NEC threshold | $2,000 for payments made in 2026. $600 for payments made before 2026. | The IRS page on whether you must file notes later years are tied to inflation adjustments. Check Publication 1099 for anything after 2026. |
| Form 1099-NEC due date | January 31, with a weekend or legal holiday moving it to the next business day. | January 31, 2027 is a Sunday, so the working date is Monday, February 1, 2027. |
| Backup withholding rate | 24 percent of reportable payments. | Confirm your situation with your CPA. |
| Card payments | Reported on Form 1099-K by the payment settlement entity. Not reported on Form 1099-NEC. | Check the IRS instructions for which payment types count. |
Who to collect a W9 from
Start with a simple rule. If you pay someone who is not your employee for services in the course of your business, ask for a W9. The IRS page on whether you must file a Form 1099 says you generally must file Form 1099-NEC if you paid someone who is not your employee for services as part of your trade or business. It also says you must file for anyone you withheld federal income tax from under backup withholding, no matter the amount.
- Freelancers and independent contractors you pay for services, such as designers, writers, developers, consultants and cleaners.
- Sole proprietors and single member LLCs. Their taxpayer ID is often an SSN.
- Partnerships and other businesses you pay for services.
- Attorneys and other legal service providers. The IRS notes that the usual corporation exception does not cover payments for legal services.
- Anyone new you add this year, even if the first job is small. A small job can grow past $2,000.
Who you may not need to file for
The IRS pages say you generally do not have to file Form 1099-NEC for payments to a corporation, including an LLC taxed as a C or S corporation. There are exceptions, such as legal and medical services. Do not use that as a reason to skip the W9, though. The form is how you learn the contractor is a corporation in the first place. Ask first, then decide.
Payments by credit card or other payment card, and certain third party network payments, are reported by the payment settlement entity on Form 1099-K. The IRS instructions say they are not reported on Form 1099-NEC. If you pay contractors through a card or a platform, read the instructions for what counts before you count the payment toward your list.
When to collect it
Collect it before the first payment. That is our advice, not an IRS rule. The pages we read do not state a timing rule for asking, and they point to Publication 1099 for more detail, so check that if you need it in writing.
Here is why we say before the first payment. Once you have paid, you have no leverage. A contractor who gets paid on Friday and is asked for paperwork on Monday often just goes quiet.
- Add the W9 to your contractor onboarding. Same step as the contract and the invoice details.
- Make it a payment rule. No W9, no payment, unless your CPA tells you otherwise.
- Do a second sweep in November. Anyone you paid this year without a form on file gets a request now.
What to check on the form
Do not just file it. Read it. The Form W9 itself has a short list of lines, and most errors hide in three of them.
| Line or part | What to check |
|---|---|
| Line 1: name | The legal name of the individual or entity. It cannot be blank. The taxpayer ID must match this name. |
| Line 2: business name | The business, trade or disregarded entity name, if different from line 1. |
| Line 3a: tax classification | Exactly one box is checked. This tells you whether the contractor is an individual, a corporation, a partnership or something else. |
| Line 4: exemptions | Any exempt payee code or FATCA code. The form says individuals are generally not exempt from backup withholding. |
| Lines 5 and 6: address | A full mailing address, including suite or apartment. This is where the payee statement goes. |
| Part I: taxpayer ID | An SSN for most individuals, an EIN for most other entities. The form says a disregarded single member LLC uses the owner’s number. |
| Part II: certification | Signed and dated under penalties of perjury. See the note below. |
One nuance. The form says that for payments such as nonemployee services, the payee must give a correct taxpayer ID but generally does not have to sign unless previously notified of an incorrect one. We still ask for a signed and dated form every time. That part is our practice, not an IRS requirement. It simply makes a cleaner record.
If you offer a way to submit the form online, the IRS requester instructions list conditions. The system must provide the same information as the paper form, it must be able to produce a hard copy if the IRS asks, and the final entry must be an electronic signature under penalties of perjury. Read the full list in the instructions before you build one.
How to store it securely
A W9 holds a full SSN or EIN, a name and an address. That is everything an identity thief wants. Treat it that way.
The IRS pages we read did not give storage rules for the form itself, so check with your CPA on retention. The IRS General Instructions for Certain Information Returns do say to keep copies of information returns for at least 3 years, and 4 years if backup withholding was imposed. The rest below is our practice, not IRS guidance.
- Never ask for a full taxpayer ID in a plain email or a chat message. Use a secure portal, an encrypted file share or a signed e-form.
- Keep forms in one locked folder with limited access. Not in a shared inbox. Not in a general bookkeeping folder.
- Name files the same way every time, such as contractor name and year.
- Record only what you need in your accounting file. Your bookkeeping software does not need the full ID in a memo field.
- Delete stray copies from downloads folders and old emails once the form is safely filed.
- The IRS says information from TIN matching must be kept confidential. Apply the same care to the forms you hold.
What to do if a contractor refuses
It happens. Stay calm and stay in writing. Here is the order we would follow.
- Ask again in writing. Send the form, say why you need it and give a date.
- Explain the cost. Per the IRS requester instructions, backup withholding applies if the payee does not furnish a taxpayer ID. The rate is 24 percent of reportable payments until the issue is fixed.
- Know the trap. The instructions say the 60 day rule for a payee who has applied for a number applies only to certain payments such as interest and dividends. Payments like nonemployee compensation are subject to backup withholding right away.
- Do not guess. If you are not sure whether backup withholding applies, ask your CPA before the next payment.
- Know the reporting. Form 1099-NEC has a box for backup withholding on payments to people who have not furnished their taxpayer ID. The IRS also says you must file for anyone you withheld from, regardless of the amount.
- Keep proof. Save every request you sent and every reply.
If you do not collect backup withholding that was required, the instructions say you may be liable for the uncollected amount. That is a real reason to settle this before you pay, not after.
Check the number before you file
The IRS TIN matching page describes a free online tool in IRS e-Services. It lets a payer check a name and taxpayer ID combination against IRS records before filing information returns. You register for e-Services first. The page says interactive matching handles up to 25 combinations at a time, and bulk matching handles up to 100,000.
The IRS requester instructions say payers who verify before filing should see fewer CP2100 backup withholding notices and penalty notices. If you get a notice anyway, IRS Publication 1281 explains the first and second B notice process. Read it before you act, because the timing rules are strict.
The W9 collection checklist: 10 steps
- List every contractor you paid in 2026. Pull it from your bookkeeping software, not from memory.
- Mark who has a W9 on file. One column. Yes or no.
- Flag who may be a corporation. Do not decide by guessing. Let line 3a tell you.
- Remove card and platform payments from your 1099-NEC list. Check the IRS instructions for what counts.
- Send a secure request to everyone missing a form. Give a date.
- Review each returned form. Name, classification, address, taxpayer ID and signature.
- Match the legal name to your vendor record. A nickname in your books becomes a mismatch on the return.
- Run TIN matching if you have access. Fix mismatches before January.
- File forms securely. One locked place, limited access.
- Hand the clean list to whoever files. Put the Monday, February 1, 2027 date on the calendar with a week of buffer.
Pair this with our year end payroll checklist, which also covers the contractor classification question.
Where the books usually break
A clean W9 file only helps if your payments are coded correctly. In the QuickBooks files we review, we documented five common setup errors. Clean setup is what makes a contractor list easy to pull at year end. Read the full 5 QuickBooks setup errors we see most to see them.
If your books are behind, fix that first. Our retroactive bookkeeping guide walks through it step by step.
A simple timeline from now to February 1
- Early November: build the contractor list and mark who is missing a W9.
- Mid November: send secure requests. Ask for a reply by a firm date.
- Late November: review forms. Chase the ones still missing. Ask your CPA about any refusal.
- December: run TIN matching if available and fix name mismatches in your books.
- Early January: reconcile contractor payments to your list. Remove card payments.
- By Monday, February 1, 2027: Form 1099-NEC filed and payee statements furnished. Check the instructions for the payee statement date.
Frequently asked questions
When should I collect a W9 from a contractor?
Before the first payment is our recommendation. The IRS pages we read do not state a timing rule for asking, so check Publication 1099 if you need the official wording.
What is the Form 1099-NEC threshold for 2026?
The IRS says the threshold is $2,000 for payments made in 2026. For payments made before 2026, it was $600.
When is Form 1099-NEC due for 2026 payments?
The IRS instructions say Form 1099-NEC is due January 31, and a weekend or legal holiday moves it to the next business day. January 31, 2027 is a Sunday, so the working date is Monday, February 1, 2027.
Do I need a W9 from someone I paid by credit card?
Payments made by credit card or certain third party network payments are reported by the payment settlement entity on Form 1099-K, not on Form 1099-NEC, according to the IRS instructions. Check the instructions for which payment types qualify.
What happens if a contractor will not give me a taxpayer ID?
The IRS requester instructions say backup withholding applies if a payee does not furnish a taxpayer ID. The rate is 24 percent of reportable payments until the issue is fixed. Talk to your CPA before you pay.
Is it safe to email a W9?
We do not recommend sending a full SSN or EIN over plain email. Use a secure portal, encrypted file share or signed e-form. The IRS pages we read did not set storage rules for the form, so check with your CPA on retention.
Freelancers who receive 1099s should also keep business money apart. Read how to separate personal and business finances.
Sources
- IRS About Form W9 page (irs.gov)
- IRS Instructions for the Requester of Form W9 (irs.gov)
- IRS About Form 1099-NEC page (irs.gov)
- IRS Instructions for Forms 1099-MISC and 1099-NEC (irs.gov)
- IRS page on whether you must file a Form 1099 (irs.gov)
- IRS TIN matching page (irs.gov)
- IRS Publication 1281 (irs.gov)
- Form W9 itself (irs.gov)
- IRS General Instructions for Certain Information Returns (irs.gov)
Want help keeping contractor records clean?
Senvora Group handles monthly outsourced bookkeeping for business owners and CPA firms, including keeping vendor and contractor records tidy so your year end list is ready for whoever files. See our outsourced bookkeeping pricing breakdown, or DM Aryan. How many contractors are still missing a W9 on your list?
