Will filling out a W-9 form on my closed business require me to pay taxes?
I owned a small business in a mall. I no longer have it because I closed it this year. The mall gave me my deposit money back after many months and plenty of email exchanges later. However, they want me to fill out a W9 form. Does this mean I'll have to pay taxes on that deposit?
I would assume that when you first made the deposit you claimed a deduction for that expense. Using simple math this means that if you had a $100,000 profit you would have been able to deduct your $4000 deposit and pay taxes on just $96,000.
Now, years later, you will have to give an account for the $4000 that comes back into your account. You can 1) ignore it in the hope it will go away; or 2) claim it as income. If you've claimed the deduction you will need to claim the income (sorry ... it's just the way things work). However, if you did NOT claim the initial deposit as a deduction then you will not need to claim the income. Even if you have received a W9.