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W-9 Requests and 1099 Reporting for Payments to Body Shops and Lenders
September 3, 2025
Q. We're working on revamping our vendor addition process. We make a number of payments to body shops, lenders and others on behalf of our customers and I'd like to make sure we aren't running afoul of our policies. Do we need to request W9's? Also, are 1099s sent to the body shops we pay on behalf of our claimants?
A.
(Answered by IOFM's third-party tax expert)
It is always best practice to ask for a W-9, though technically if you know the transaction won't be reported on a 1099, you could not…
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