Someone please clarify this for me. I have just put a very large and expensive home in escrow and I got a call from the office manager of the listing agent's side that she needs a W9 from me in order to complete the transaction. She was talking in riddles so I will spare you the conversation I had with her, but she is saying this:
As of January 1, 2009, all buyer's agents will provide a completed W9 to the listing side. Checks are still cut from escrow, but it appears the IRS is trying to pin down a paper trail on commissions paid. When I asked her if she is reporting commissions paid to the IRS vis-a-vie these W9s, she said she didn't know.
I thought I was up on all the new laws but this one completely passed me by! I think it's ominous. Why would I want my taxpaper ID floating around to various brokerage firms? And what would I do with an incoming W9 as a broker owner when I am the listing agent? How did I miss this!?
The listing agent in this deal is a national firm and they won't pay their agents at COE without the other side's W9.
Can anyone clear this up for me? I may have been under a rock when this news broke.