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IRS W-9 2025 Renton Washington: What You Should Know
Wages & W-9, Form W-9 — IRS When you pay for the services of your business in the state where you reside, the amount of sales taxes paid by you on your sales are subject to the standard sales tax rate. If you work for your business from out of the state, you will need to obtain a W-9 or other similar tax form from the appropriate tax authority and submit it with your monthly sales record. If you use a business agent, check with them for the form and instructions. State sales tax rate on your business purchases must be included and accounted for on your W-9 or similar payment paper form. Also, if you pay a customer in California, is sure to attach the proper form. Form W-9 For Certain Types of Sales When you sell certain items in the United States, you must make an actual payment from your gross sales. The payment must be made in U.S. funds and include the tax. For tax year 2016, U.S. residents have a new alternative method of reporting payments. In the Alternative Method Worksheet to Schedule D, you must use either Form 1099-MISC from IRS or Form W-9 for Business Sales in the U.S. Please include a completed Form W-9 for Business Tax Information in any payment of sales tax in the U.S. that you report to the IRS. Businesses with Sales Tax In order to report sales taxes, pay the applicable tax to the state where a sale is made. Use Form 5485, U.S. Sales Tax Return (Form 2848/5-EZ). Use Form 8283, Business Sales Tax (Form 8283-EZ), to transfer the payment for business sales to a new business in the same state as the original business. Note: Certain types of businesses have an exemption from the sales tax and other local and federal sales taxes and must file an individual Form 1040 to report sales in their states. The following examples demonstrate how to report sales taxes to determine if you are exempt. They also show a process for filing Form 8283 for an entity other than a taxpayer with a Schedule C (Sales and Use Tax). Example 1 — Limited Liability Company Sales of Goods by an Arizona Seller The seller of goods is the limited liability company. The limited liability company purchased the merchandise at its place of business in Arizona and was issued a sales tax exemption certificate at the time of purchase.
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