How to Collect W-9s From Vendors Before 1099 Season

TL;DR: Ask for a W-9 before you pay a new vendor, not in January. Check the name, tax classification and TIN, and file it by vendor. For payments made in 2026, the 1099-NEC and most 1099-MISC thresholds rose from $600 to $2,000, so fewer vendors need a form, but you still need a W-9 on file to know who does. The IRS suggests keeping W-9s for four years.

Every January, bookkeepers rediscover the same problem: a list of vendors paid last year, half of whom never sent a W-9, and a January 31 deadline. The fix isn't working faster in January. It's collecting the form when the vendor is set up.

When should you collect a W-9?

Before the first payment. The IRS describes it as the first step when you hire an independent contractor: "the first step is to have the contractor complete Form W-9." (IRS, independent contractors)

The form exists so the payee can "provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return." You keep it. The header says plainly: "Give form to the requester. Do not send to the IRS." (IRS, About Form W-9)

Collecting it at setup has a second benefit. If a payee doesn't provide a TIN, you're generally required to withhold 24% of reportable payments as backup withholding, which is a far worse conversation than asking for a form. (IRS, Instructions for the Requester of Form W-9)

What changed for 1099s in 2026?

The reporting threshold went up for the first time since 1954. For payments made after December 31, 2025 and before January 1, 2027, the threshold for the 1099-NEC and for rents and most other 1099-MISC payments is $2,000, up from $600. It's indexed for inflation from 2027. Royalties still report from $10. The same $2,000 applies to backup withholding on those payments. (IRS, Instructions for Forms 1099-MISC and 1099-NEC)

Two things follow. Fewer small vendors will need a 1099 for 2026. And you can't tell which ones until year end, so collecting a W-9 from every vendor up front is still the safe habit.

The 1099-NEC is due January 31. For 2026 payments that date falls on a Sunday, so the deadline moves to Monday, February 1, 2027.

What should you check on a W-9?

The current form is the March 2024 revision. (Form W-9 PDF) Check four things when it comes in:

1. Line 1, name, matches the name the TIN is registered to. For a single-member LLC that's often the owner's name, with the business name on line 2.
2. Line 3a, tax classification. Corporations are generally exempt from 1099-NEC reporting (legal and medical payments are exceptions), so this decides who gets a form.
3. Line 3b, the newer checkbox for partnerships and trusts with foreign owners.
4. Part I, the TIN, is complete, and Part II is signed and dated.

An old or unsigned form isn't much better than none.

How long should you keep W-9s?

The IRS's guidance for businesses is that "the W-9 should be kept in your files for four years for future reference in case of any questions from the worker or the IRS." That's IRS web guidance rather than a regulation; the form's instructions don't set a period. Keep the current W-9 for active vendors, and archive superseded ones with a date.

How do you collect W-9s without chasing email?

Make it part of setting up a vendor, and make it one link rather than an email thread:

1. Send an upload link with every new vendor setup, with the blank W-9 attached. Avoid asking for the form by plain email: a W-9 carries a full SSN or EIN.
2. Name files consistently: W-9 - Vendor Name - 2026-03-14.pdf.
3. One folder per vendor, with the W-9, contracts and certificates of insurance together.
4. In Q4, check who's missing, so January is a filing job, not a collection job.

The Drive AI covers each step:

• Collect. A file request gives each vendor a secure upload link, no account needed, and the agent can send a reminder to anyone who hasn't uploaded.
• File. A workflow on the upload folder reads each W-9, renames it with the vendor's name and date, and files it under the vendor.
• Check. Ask the agent across the folder: List every W-9 under /Vendors with the name, tax classification, and whether it's signed. Which vendors in this list have no W-9? It reads each form into a table you can export to Excel.

What it doesn't do: it doesn't validate TINs with the IRS (use the IRS TIN Matching program for that), and it doesn't file 1099s. It keeps the paperwork complete and findable so whoever files them can.

File requests and connected drives come with the Max plan and Team plans.

Frequently Asked Questions

When should I ask a vendor for a W-9?

Before you make the first payment. Collecting it at setup avoids year-end chasing and backup withholding.

What is the 1099 threshold for 2026?

$2,000 for 1099-NEC and for rents and most other 1099-MISC payments made in 2026, up from $600. Royalties still report from $10. The threshold is indexed for inflation from 2027.

Do I send the W-9 to the IRS?

No. The vendor gives the W-9 to you, and you keep it. You use the information on it to file the 1099.

How long do I need to keep a W-9?

The IRS suggests keeping W-9s for four years.

What happens if a vendor won't give me a W-9?

You generally have to apply backup withholding of 24% to reportable payments to a payee who doesn't provide a TIN.

Is it safe to collect W-9s by email?

It's risky, because a W-9 includes a Social Security or Employer Identification Number. A secure upload link is safer than an email attachment.

Start with this year's vendors

Pull the list of vendors you've paid this year, check it against the W-9s you have, and send one upload link to everyone missing. Doing it in the fall means January is just the filing.

Related: collect tax documents from clients automatically and how to organize bookkeeping documents.