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I know we should have a TIN for a vendor or a W-9 on file before sending out a payment. How about to a tax collector or a tax collecting Agency?

April 26, 2017agency Collector file payment tax tin vendor W-9

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I know we should have a TIN for a vendor or a W-9 on file before sending out a payment. How about to a tax collector or a tax collecting Agency?

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You do not need to collect a taxpayer ID number from a tax collector because the instructions for 1099-MISC state that payments made to government entities are exempt from reporting and withholding. Even if your municipality has contracted with a third party collection agency, any payments you make to this agency are still considered payments to the government municipality. This was confirmed by IRS Information Officer Miss Lamb (ID # 1306657). The instructions to form W-9 on page 2 states that, even if you do not receive a TIN from an exempt payee, including federal, state and local governments, that you do not begin backup withholding.