What's a W-9?
So we are in the process of putting in another bid.
These people want us to close in 14 days but are negotiating like the'd rather die than sell.
From the beginning of negotiations the sellers wanted a pre-approval letter and a W-9.
It turns out a W-9 is a document that releases ALL your info from the IRS to the holder.
LIKE HELL!
I don't even know that much about myself. What's next? They want a list of my sexual partners!
posted by Perdita @ 9:20 AM
4 comments
4 Comments:
This comment has been removed by a blog administrator.
Are you quite sure it's just a W-9? Because W-9s are simply a statement from you asserting that the Social Security number (or other Taxpayer Identification Number, aka TIN) you've provided on the form is really and truly your number, and (in the case of employers of independent contractors) that you are not subject to backup withholding. It's for much the same purpose as the W-4 you filled out when you got hired as an employee at MegaCorp. Possession of a signed W-9 does not release your IRS records to the holder. The use of this form not at all uncommon in real estate transactions although generally the filling out/signing of it occurs during the closing—whomever is funding the loan needs it so they can report interest paid by you to the IRS (which you want because it's the $$ you get to write off on Schedule A of your 1040).
It's possible the seller wants you to fill out a substitute TIN form, which for whatever reason contains language which somehow releases your IRS records to the seller (highly unlikely to be effective as the IRS will still want to see Form 8821 or, in the case of lenders, a 4506 before they do diddly). You're under no legal obligation to fill out a modified TIN form but either member of the transaction may profer her or her own form so long as both parties agree to any modifications. This is what a W-9 from the IRS looks like.
If you've working with a Realtor, ask him or her to draft a statement which says "Yep, we've filled out W-9s and they are in our Realtor's files and you can see them when the time is right, but until then, you ain't getting our TINs, you scumbag*" and give that to the seller. If you are pursuing a For Sale by Owner and you guys are representing yourselves (other than the obligatory "What, are you nuts? Pay the 3% already because these are exactly the sort of questions a good realtor answers for you.") or the seller is loaning back to you guys then the timing of the W-9 is still negotiable but the seller's request to have it on hand is completely reasonable.
Incidentally, this uneasy bedfellows thing is exactly why I never took seller financing; I didn't want Joe Blow Average Citizen nosing about in my financial records. If Bank of America screws up, at least you have some protection. Joe Blow screws up? Not so much. The benefits of seller financing is almost always solely for the seller (he is looking for a way to get a higher secured interest rate on his money then he could get by going to other methods of investment) and unless they are willing to give up serious points on the interest rate, it's not worth it to the buyer: does little positive for your credit rating, exposes to you fraud, and puts you at the whims of someone who is a wanna-be banker**.
Last week I played a doctor on blogger, this week an advice columnist for sticky office relationships and now, taxes/real estate. I -so- need a real job.
*genuine legal term
**IMHO
2nd try on the comment, I screwed up some of the links on my first try
Hi. You can find a blank Fillable Form W-9 here.
http://goo.gl/Qx0cWu
You can fill out the form, save it, fax it, and email it. Please feel free to use it.
There has been a lot of success on Indian websites that allow sellers of Real Estate site to make it unique and help sell their Lands. What do you think?
http://www.nagprojects.com
Post a Comment
<< Home