W-9 Missing: What to Do When a Vendor Won’t Respond
Missing W-9s create compliance risk—use documented outreach and escalation steps to protect your business.
W-9 Missing: What to Do When a Vendor Won’t Respond
Missing W-9 forms are one of the most common vendor compliance problems businesses face—especially during year-end 1099 preparation. When a vendor refuses to respond or ignores repeated W-9 requests, it can create serious reporting and payment risks, including incorrect 1099 filings, IRS mismatch notices, and backup withholding requirements.
The best approach is to treat a missing W-9 as a compliance issue that requires documented outreach, escalation, and a clear internal policy for how payments will be handled.
If you pay a vendor without a W-9, you may be exposing your organization to IRS penalties and backup withholding liability.
Why W-9 Forms Matter
Form W-9 is the IRS document used to collect a vendor’s:
- legal name
- business name (if applicable)
- federal tax classification
- exemption status (if applicable)
- taxpayer identification number (EIN or SSN)
- certification signature and date
A signed W-9 is your organization’s proof that the vendor certified their taxpayer information.
W-9 collection is a foundational requirement for accurate 1099 reporting.
Why Vendors Don’t Respond to W-9 Requests
Vendors fail to respond for many reasons, including:
they are busy and ignore email
they do not understand why the W-9 is required
they are concerned about security or identity theft
they are no longer active but still in your vendor file
the vendor contact information is outdated
they believe they are exempt from reporting
they do not want to share their SSN (sole proprietor)
Many vendors ignore W-9 requests simply because the request was not urgent or clearly explained.
What Happens If You Don’t Get a W-9?
If a vendor never provides a W-9, your business may face:
missing TIN reporting risk
CP2100 mismatch notices
B-Notice compliance requirements
IRS Notice 972CG penalty exposure
backup withholding requirements (24%)
vendor disputes and payment delays
Missing W-9s are one of the most common triggers of year-end compliance emergencies.
What to Do When a Vendor Won’t Respond (Step-by-Step)
Below is a practical process for handling missing W-9 vendors.
Step 1: Confirm the Vendor Is Actually Reportable
Before escalating, confirm whether the vendor is required to provide a W-9.
Review:
- vendor payment type (services vs goods)
- total annual payment amount
- vendor tax classification (if known)
- whether the vendor is exempt
Some vendors may not require a 1099, but you should still maintain proper taxpayer documentation if they are paid for services.
Step 2: Verify Vendor Contact Information
Many missing W-9 cases are caused by bad contact information.
Confirm:
- correct email address
- correct mailing address
- correct phone number
- correct AP contact name
If the vendor contact record is outdated, your W-9 requests may never be received.
Step 3: Send a Clear W-9 Request With a Deadline
A strong W-9 request should:
- explain why the W-9 is required
- explain the IRS compliance requirement
- provide a due date
- explain what happens if they do not respond
- include the W-9 attachment or secure submission method
Vendors respond faster when they understand the reason and urgency.
Best Practice Language
Let the vendor know their payment may be delayed or backup withholding may apply if the W-9 is not provided.
Step 4: Send Reminders and Escalate (Do Not Send Only One Email)
Most organizations use a reminder cadence such as:
Day 0: W-9 request sent
Day 7: reminder #1
Day 14: reminder #2
Day 21: final reminder / escalation notice
The IRS does not care that the vendor “didn’t respond.” You must be able to prove you followed up.
Step 5: Document All Outreach Attempts
Every outreach attempt should be logged for IRS compliance.
Your documentation should include:
dates of outreach
who was contacted
copies of emails sent
reminder history
proof of mailing (if mailed)
vendor response status
Outreach documentation is essential for audits and reasonable cause penalty relief.
Step 6: Consider Placing the Vendor on Payment Hold
If your internal policy allows, placing the vendor on hold is one of the most effective ways to get a response.
This may include:
- blocking new invoices
- delaying payment until W-9 is received
- requiring W-9 submission before vendor reactivation
Vendors often respond quickly once payment is impacted.
Step 7: Understand Backup Withholding Requirements
If a vendor refuses to provide a valid TIN, your business may be required to apply:
backup withholding at 24%
Backup withholding is a compliance rule that requires withholding a percentage of certain payments and remitting it to the IRS.
Backup withholding is not optional when required—it is an IRS enforcement mechanism.
Step 8: Validate the Vendor Once a W-9 is Received
Once the vendor submits the W-9, the next best step is to validate their information.
This includes:
- verifying EIN/SSN format
- confirming legal name is correct
- running IRS TIN matching to confirm the name/TIN combination matches IRS records
IRS TIN matching prevents repeat issues and reduces CP2100 notices.
Step 9: Reassess Vendor Relationship Risk
If a vendor repeatedly refuses to provide required documentation, your organization may need to evaluate:
- vendor termination
- alternative suppliers
- increased payment controls
- long-term compliance risk
Vendors who refuse compliance requests may be a risk beyond tax reporting.
Common Mistakes Businesses Make With Missing W-9 Vendors
Avoid these common mistakes:
- paying vendors without taxpayer documentation
- assuming the vendor is exempt without confirmation
- sending one W-9 request and stopping
- failing to keep proof of outreach
- filing 1099s with missing or placeholder TINs
- waiting until January to request W-9s
- not validating the vendor after receiving the W-9
Missing W-9s are manageable when handled early, but become expensive when ignored until filing season.
Best Practices to Prevent Missing W-9 Problems
The best way to prevent missing W-9 issues is to implement a structured onboarding process.
Recommended controls include:
require W-9 before vendor activation
require W-9 before payment approval
automate W-9 outreach and reminders
validate vendor name/TIN combinations at onboarding
run bulk vendor validation annually in Q4
maintain centralized documentation storage
Strong onboarding controls reduce year-end compliance chaos.
Sample W-9 Follow-Up Escalation Workflow
A simple compliance escalation workflow might look like:
- initial W-9 request email
- reminder email #1 (7 days later)
- reminder email #2 (14 days later)
- final notice with deadline (21 days later)
- vendor payment hold or backup withholding warning
- management escalation or procurement escalation
- vendor compliance closure (W-9 received or vendor deactivated)
This workflow provides both operational discipline and audit-ready proof.
Frequently Asked Questions (FAQ)
What if a vendor refuses to provide a W-9?
If the vendor refuses to provide a W-9, your organization may need to apply backup withholding and/or place the vendor on payment hold depending on policy and IRS rules.
Can I file a 1099 without a W-9?
You may still be required to file a 1099 if payments were made, but filing without a valid TIN increases mismatch and penalty exposure.
What is the backup withholding rate?
The current IRS backup withholding rate is 24%.
Should I stop paying vendors until they provide a W-9?
Many organizations do. Payment hold policies are one of the most effective ways to obtain compliance documentation.
How do I prove vendor outreach during an audit?
By keeping copies of all outreach emails, reminder logs, mailing proof, and internal notes showing dates and escalation steps.
Conclusion
When a vendor does not respond to W-9 requests, businesses should treat it as a compliance risk and implement a structured outreach and escalation process. The best approach includes verifying vendor contact details, sending W-9 requests with clear deadlines, documenting all outreach attempts, and applying payment holds or backup withholding requirements when necessary. Businesses that validate vendor taxpayer information early and automate W-9 workflows dramatically reduce year-end filing issues and IRS penalty exposure.
Automate W-9 Collection and Outreach with TIN Comply
TIN Comply helps businesses reduce missing W-9 problems by automating vendor outreach and tracking compliance documentation in one centralized system. With automated W-9 request workflows, reminder scheduling, IRS TIN matching validation, bulk vendor list cleanup, and audit-ready reporting, TIN Comply helps organizations keep vendor records accurate and compliant year-round.