States, government structures and business organizations may issue their own version of the blank, in case it suits all the IRS requirements and gathers the essential data. One of such form substitutes is W-9 Colorado. Let’s find out how it’s different from standard IRS paper.
W-9 Colorado brief review
In general, the document has only minor changes comparing to its conventional version. Here’s what will be different:
- You can choose whether you’re employee or not. Select Y or N.
- There are way fewer options for entity type.
- You only check the box for backup withholding, if necessary. There are no codes.
- There is extra line for phone number.
- There are no FATCAreporting items.
- There is a special questionnaire after Certification part. It gathers information about gender, ethnicity and business classification (small or not).
Some companies developed their own method to collect all the essential data from vendors. A good example is University of Colorado Foundation W-9. The university has a Procurement Service Center that allows suppliers to register and enter all the information required.
Why do you need W-9 for taxes in Colorado?
In most cases you’ll get a request if you’ve received $600 and more for services as an independent contractor or vendor. The other reasons are opening a bank account, inherited property and direct sales of $5000 and more.
IRS wants you to submit the document, cause it contains crucial information that will be used to furnish 1099 forms. When you download the blank to fill, make sure you have current 2020 blank.