Expert: Morgan Smith - 1/14/2012

Question
A tenant of my residential rental property has just requested a W-9 from me.  I file this rental income on schedule E each year.  A tenant has never asked this from me before. Do I need to supply this?  I am very uncomfortable giving my tenants my social security number.

What do I do?

Thanks, Gabe

Answer
Dear Gabe,

Before I respond further to your question, I must make clear that I do not represent you, and cannot give you individual particularized legal advice. No attorney client relationship is created by this email. For legal advice, you should hire your own attorney, and follow their advice. My role with AllExperts is limited to providing general information and suggestions for educational or general knowledge purposes.

Before you take any action, consult with your own attorney. Speak to an attorney licensed to practice law in your state about the strengths, weaknesses, and likely outcomes of any contemplated cause of action or defense.

Your question is about the use of a W-9 form by a tenant to compel a landlord to disclose a social security number or tax id number.

According to the instructions on the form, a W-9 can be used to report, "for example, income paid to you, real estate transactions, mortgage interest you paid..." etc.  Arguably, your tenant may have a legitimate claim for use of the form.  The IRS instructions on the form also state that, "If you fail to furnish your correct TIN to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect."  

Further, misuse of the form and or information by folks such as your tenant expose them to penalties as well.

I recommend that you speak to your tax preparer, and or an attorney licensed to practice in your state right away.  

Furthermore, I suggest that you consider ringing the Taxpayer Advocate Service hotline at 1-877-777-4778.  I tried to do so today on your behalf but they are closed in observation of the Rev. Dr. Martin Luther King Jr. holiday.

I hope this helps, good luck to you.

Morgan Smith
SMITH & RAVER LLP
Minneapolis, Minnesota
smith-and-raver-llp.biz
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