Skip to main content
Version: 1.7.3

Overview

If you pay your vendors more than a certain amount specified by the IRS or if you have withheld Backup withholding from the vendors, you should file either 1099 or 1042-S with the IRS. To file 1099 forms, you must obtain TIN and certain other information such as name, address, federal tax classification, TIN, subjection to backup withholding, and exemption codes for FATCA reporting from the respective payees/vendors beforehand.

Generally, the payers should use one of the following forms to obtain TIN from the payees/vendors.

  • W-9 - The IRS Form used to obtain TIN information from the payees/vendors who are U.S. individuals or entities.
  • W-8 BEN - The IRS Form used to obtain TIN information from the payees/vendors who are non-U.S individuals.
  • W-8 BEN-E - The IRS Form used to obtain TIN information from the payees/vendors who are non-U.S entities.
note

With TaxBandits API, you can provide your recipients or vendors the flexibility to select and complete the appropriate form (W-9, W-8BEN, or W-8BEN) based on their citizenship status. For this, you must use the WhCertificate endpoint.

Methods to Automate W-9/W-8​

With TaxBandits API, you can automate the W-9/W-8 completion process using three different methods.

1. Payee-Initiated:​

  • RequestByUrl: Generates a unique, secure URL for each payee/vendor. You can embed this URL as an iFrame into your software/vendor portal, allowing each payee to complete their W-9/W-8 forms individually.
  • RequestByBusinessURL: Provides a single public URL for a specific payer (or DBA). You can embed this in your website or send it to your vendors via email, enabling multiple payees/vendors to complete their W-9/W-8 forms using the same link.

2. Payer-Initiated:​

  • RequestByEmail: In this method, you can use the API to send email requests directly to the payees for the completion of the W-9/W-8 form. Your payees will receive an email with a secure URL to complete their form. This secure URL (W-9/W-8 completion page) can customized with your own branding.

3. Drop-In UI:​

TaxBandits API offers a readymade Form W-9 interface that can be tailored to align with your brand and integrated easily into your existing systems. Learn more

info

If you have the same vendor/recipient working for multiple payers, you are not required to request a W-9 separately for each payer. Instead, you can request a W-9 once for a payer, collect the W-9, and map it to the other payers using the LinkWhCertificate endpoint.

Webhooks Configuration for W-9/W-8​

In order to receive status updates regarding your W-9/W-8 requests, you can configure Webhooks for the respective event type based on the form type (W-9 or W-8BEN or WhCertificate) request method you use. Here are the applicable webhook event types for the W-9/W-8 process.

The webhook notification will include TIN Matching status if you’ve opted for it in your W-9/W8 request.

note

As an alternative to webhooks, you can use the Status endpoint to retrieve the status of your W-9/W-8 requests.

TIN Matching with W-9 Requests​

TaxBandits API supports TIN Matching as part of the W-9 request process. While using RequestByUrl, RequestByBusinessURL, and RequestByEmail methods, you can set the IsTINMatching node to TRUE to enable TIN Matching. Once the W-9s are collected, TaxBandits will initiate TIN Matching.

For Drop-In UI, you can configure the settings so that TIN Matching is automatically initiated once the payee submits their form.

Customization Options​

All methods (RequestByUrl, RequestByBusinessURL, and RequestByEmail) offer customization features to align with your business needs.

1. Email Customization​

  • Customize the emails sent to payees, including your business name, logo, and color theme for a branded experience.

2. Secure URL Customization​

  • The secure URL provided for W-9/W-8 form completion can be customized to represent your site or portal, creating a seamless transition for the users. See how

3. Webhooks Customization​

The information received through Webhooks can be tailored to your specifications. For instance, you can choose to exclude Personally Identifiable Information (PII) such as TIN in Webhook notifications for added security.

4. W-9 iFrame Page Customization (Applicable to RequestByUrl method)​

  • Business Logo: Set the logo URL and position according to your preferences.
  • Page Theme: Customize the primary and secondary colors of the iFrame page.
  • Interview-Style Entry: Offer your recipients an interview-style experience instead of a direct-form entry.
  • ShowDownloadPage: Decide whether to provide the option for recipients to download their completed form after submission.

5. Redirect URLs (Applicable to RequestByEmail method)​

  • Set specific URLs where you want the payees to be redirected once they complete or cancel the W-9 submission process.