REASON FOR POLICY
This policy helps the University with its compliance with IRS regulations concerning the issuance and accuracy of annual tax statements to vendors. Additionally, two purposes are served:
- IRS reporting requirements are facilitated. Certain types of payments made to vendors must be reported to the IRS. Having a signed W-9 on file allows the University to report the correct combination of Tax Identification Number (TIN) and name, thus avoiding IRS penalties.
- Evidence of validity is documented. Having a signed W-9 on file is considered evidence that the payee is a valid individual or business. This helps the University to avoid making inappropriate payments to fraudulent entities.
PRIMARY POLICY TO WHICH THIS POLICY RESPONDS
This policy primarily responds to the regulations of the IRS, which governs the taxation and reporting responsibilities of U.S. based entities. On an annual basis, the University must issue 1099 tax statements to all eligible vendors regarding the income they received from Columbia. The University must also electronically transmit a file to the IRS with accurate data pertaining to those vendors including Name, Address, Tax Identification Number and Gross Income.
WHO IS GOVERNED BY THIS POLICY
All Columbia University employees and departments that seek to do business with a U.S. based individual/sole proprietor, corporation, partnership, LLC, or other entity specified by the IRS. All U.S. based entities doing business with Columbia University.
WHO SHOULD KNOW THIS POLICY
- Senior Financial or Business Officers
- Chairs of Departments, Directors of Institutes and Centers
- Department Administrators
- Divisional Administrators with financial responsibility and oversight
- Program Directors
- Faculty
- Junior Officers and Non-Officers with financial responsibility and oversight
- Administrative staff with Accounts Payable responsibility
EXCLUSIONS & SPECIAL SITUATIONS
A W-9 form is not required for the following:
- Employees of the University including students receiving expense reimbursement
- Nonresident Aliens or Foreign Entities
- Petty cash reimbursements
- Patient Refunds to Individuals
PROCEDURES
The W-9 form can be downloaded from the IRS website at http://irs.gov/pub/irs-pdf/fw9.pdf. Detailed instructions for the requester of the W-9 form can found on the IRS website at http://www.irs.gov/pub/irs-pdf/iw9.pdf. The information on page 1 must be completed and signed by the vendor.
More information on the Vendor Management process can be obtained by visiting:https://www.finance.columbia.edu/content/vendor-management.