1099-MISC Vendor Procedures
The Controller’s and Accounts Payable Offices are issuing the following Moody-wide instruction regarding 1099 vendors. This policy brings MBI into compliance with IRS regulation and enables us to be more efficient and accurate in our accounting practices.
Q: Who needs to complete the W-9 Taxpayer Identification Number and Certification Form?
A: Any individual or entity (ie. law firm, chapel speaker, referee, author, artist) who is not an employee of Moody Bible Institute and receives compensation as a means of income for goods and/or services provided to Moody. Also among those from whom a W-9 form is required are individuals or entities that receive rent, prizes or gifts from Moody Bible Institute. The W-9 form needs to be signed by the individual referenced on the form or an authorized representative of the entity represented on the form.
Q: Why does the Moody Bible Institute Accounts Payable Department need a completed W-9?
A: The critical reasons why a W-9 form needs to be completed and submitted to the Accounts Payable Department are:
To prevent unnecessary fines or other penalties associated with improper record maintenance according to the IRS;
To determine the type of vendor the individual or entity is for tax-reporting purposes;
To confirm that the information we have on file for the particular 1099 vendor, whether it be an individual or other entity, is accurate.
Q: When does the completed W-9 form need to be submitted to the Moody Bible Institute Accounts Payable Department?
A: The completed W-9 form needs to be on file with the Accounts Payable Department by the time a check requisition is submitted for payment. The W-9 form must be requested from the vendor by the department who initiates the check requisition for payment to that vendor. If a check requisition is submitted for a 1099 vendor and a W-9 form is not on file, the payment will be delayed until the completed W-9 form is received.
Note: Further information may be attained by accessing this IRS website.
Please feel free to contact Roger Sipes (x2226) with your questions.