The W-9 Shake-Up: What the New Draft Form Could Mean for Sole Proprietors

The IRS quietly released a draft Form W-9 in mid-September — and one proposed change could have a major impact on how businesses collect taxpayer identification numbers from sole proprietors and single-member LLCs.

In this episode, Jason Dinesen — The 1099 Guy — breaks down what’s in the draft, why the change matters, and what AP, procurement, and vendor onboarding teams should do now (and not do yet).
This is a big one: the IRS is proposing that sole proprietors would no longer be allowed to provide an EIN — only a Social Security Number. Jason explains why this shift is happening, how LLC confusion plays into it, and what you’ll need to update if the draft becomes final.

In this episode:
00:00 — Welcome to Information Return Intelligence
00:30 — Draft W-9 released in mid-September
01:40 — New digital asset broker checkbox
02:05 — The major proposed change: SSNs only for sole proprietors
03:00 — Why LLC confusion is driving this
04:20 — Current rules vs. proposed rules
06:25 — Why draft status matters (don’t change anything yet!)
07:40 — How to monitor the IRS W-9 page
09:10 — Will you need to re-solicit W-9s? Jason explains
11:00 — What to do now (and what not to do)

🎙️ Hosted by Jason Dinesen — The 1099 Guy

#1099 #W9 #TaxCompliance #VendorManagement #Accounting #InformationReturns

Information Return Intelligence delivers weekly, practical insights on 1099s, 1042-S, W-9s, and the full ecosystem of information reporting — helping professionals stay compliant and a step ahead.

🎙️ Hosted by Jason Dinesen, EA — The 1099 Guy