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W-9 needed from employee stockholders receiving dividends?
October 11, 2023
Q. We will be paying a dividend to employee stockholders this year. Since we have their SSN and a W-4 on file for payroll purposes, do we also need to collect a W-9 from them to support the 1099-DIV reporting on the stock dividend?
A.
(Answered by IOFM's third-party tax experts)
Yes. If it's for a reportable dividend under Code section 6042(a)(1)(a) (aggregate $10 or more in the calendar year), the "Manner required for furnishing a taxpayer identification number" is specified in Reg. sec.…
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