why does the bank want me to fill out a w-9 form if i agree to cash for keys
Real Estate Attorney
They are going to pay you, and the payment will be treated as income.
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Tom Gimer, Esq. -- helping clients in DC and MD -- 202.556.4LAW (4529)
The form is their proof that they paid you. You will need to declare this on your tax return.
THESE COMMENTS ARE NOT LEGAL ADVICE. They are provided for informational purposes only. Actual legal advice can only be provided after consultation by an attorney licensed in your jurisdiction. Answering this question does not create an attorney-client relationship or otherwise require further consultation.
Banks and other individuals are required to give payees a W-9 to establish that you have a valid social security number or tax identification number so that they do not have to withhold income tax on the payment to you. If you do not provide them with a valid social security number (ex: because you are not a United States citizen), then they are required to withhold a certain amount of tax from this payment and pay it over to the United States. This is a very common transaction for banks and nothing special. Simply put down your social security number or tax ID number and you should get all of your money from them without a problem.
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