I am being offered keys for cash but they are requesting a w-9 tax form why?

Asked almost 4 years ago - San Luis Obispo, CA

why does the bank want me to fill out a w-9 form if i agree to cash for keys

Attorney answers (4)

  1. Troy Austin Pickard

    Contributor Level 17

    Answered . The bank wants you to fill out the form because they are planning on paying you. It will still be income, and under normal circumstances you must report all income on your tax returns.

  2. Charles Alexander Naegele

    Contributor Level 14

    Answered . 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.

    Legal disclaimer: If you found this information helpful, check the “thumbs up” button. This information is not intended to create an attorney-client relationship and is provided for general informational purposes only pursuant to the Avvo.com community guidelines.

  3. Thomas H Gimer

    Contributor Level 13

    Answered . They are going to pay you, and the payment will be treated as income.

    NOTE: The response given does not form an attorney-client relationship and it is provided solely as the opinion of the author. It is for informational purposes only under the AVVO terms and conditions. If a legal opinion or representation is desired, please seek independent legal counsel.

    REQUEST: Please give this answer a "thumbs up" if you find it valuable.

    Tom Gimer, Esq. -- helping clients in DC and MD -- 202.556.4LAW (4529)

  4. Ayuban Antonio Tomas

    Pro

    Contributor Level 20

    Answered . 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.

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