Why would a business require a client to fill out a W-9 form to obtain an owed refund for an excess deposit made?
3 attorney answers
The simple answer is that people don't understand the tax laws and rules and are very afraid of the IRS. Another answer may be that some interest is going to be paid with the refund. The interest would be taxable income. Ask the builder to show you the law he is relying on.
I have changed this from "Real Estate" to "Tax Fraud & Tax Evasion" so that you will get better answers.
Why? B/c I am NOT a Tax Expert and you are asking a TAX Question!
Sounds like you are asking if 'there is not return consideration, what Tax may be due?" Dunno, and truly have No Idea. But hopefully this change helps to move along you getting an answer!
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I suggest you a) discuss with builder which may clear up error if there is one; or b) ask your cpa; c) have contract and docs reviewed by attorney.
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