# Glossary Source: https://developer.avalara.com/products/avalara-1099-and-w9/integration-guides/1099-and-w-9/nyr7751209165517/ Guide: 1099 & W-9 # Glossary Definitions and explanations of key terms and concepts related to tax forms and compliance workflows. - **Archiving** In this API, archived forms are marked as inactive or no longer in use but aren’t permanently deleted. Controlled via the `archived` field. - **Backup Withholding** A tax withholding requirement that applies when certain conditions aren’t met, such as an incorrect TIN or missing certification. Indicated with `backupWithholding: true` in W-9 forms. - **Business Classification** Defines the tax classification of the recipient’s business in a W-9 form. Examples include: - Individual/Sole Proprietor - LLC - C Corporation - S Corporation - Partnership - **Company** A U.S.-based business or legal entity that requests tax documentation from individuals or vendors, such as a W-9 or W-8 form, and issues 1099 forms for payments made. In the API, companies are used in the W-9 workflow. - **Digital Signature** A required component of electronic tax forms, such as W-9, W-4, and W-8. Collected as an SVG image and submitted in the `signature` field. This validates recipient consent and finalizes the form submission. - **e-Delivery Consent** Confirmation that a recipient has agreed to receive tax documents electronically. Captured in the `eDeliveryConsentedAt` field. Required for legal e-delivery. - **Exempt Payee Code** An optional W-9 field for recipients who are exempt from backup withholding, such as government entities or tax-exempt organizations. - **FATCA (Foreign Account Tax Compliance Act)** A U.S. law requiring disclosure of foreign financial assets and income. W-9 forms may include an `exemptFatcaCode` if the recipient is exempt from FATCA reporting. - **Foreign Country Indicator** Indicates whether a payee is a foreign person or entity. If `true`, it may affect form type selection, such as W-8 instead of W-9, and IRS filing obligations. - **Form Type** The classification of a form submitted or requested in the system. Determines the required fields and processing rules. See supported form types below. - **IRS (Internal Revenue Service)** The U.S. federal agency responsible for tax collection and enforcement. Submit all 1099 forms to the IRS either electronically or on paper. W-9, W-4, and W-8 forms are generally collected and stored by the payer but not submitted directly. - **Issuer (Payer)** In the 1099 workflow, an issuer is the business entity responsible for filing 1099 forms with the IRS. Associate each 1099 form with an issuer record. Functionally equivalent to a company in the W-9 flow. - **Payee Information Forms**: - W-9 - W-4 - W-8BEN - W-8BEN-E - W-8IMY - **Recipient (Payee)** An individual or business who receives payment from a company or issuer and is the subject of a 1099 or W-series form. Recipients must provide accurate tax details and may receive a 1099 form depending on payment type and amount. - **Reporting & Compliance Forms**: - 1099-MISC - 1099-NEC - 1099-K - 1099-DIV - 1099-R - 1095-B - 1042-S - **TIN (Taxpayer Identification Number)** A generic term for any identifier used by the IRS to track tax obligations. TINs can take several forms: - **SSN (Social Security Number)**: Issued to U.S. individuals for personal tax reporting - **EIN (Employer Identification Number)**: Issued to U.S. businesses and organizations - **ITIN (Individual Taxpayer Identification Number)**: Issued to nonresident individuals not eligible for SSNs - **TIN Matching** A validation process offered by the IRS that checks whether the name and TIN combination submitted matches IRS records. Used to reduce the risk of form rejection or penalty. Controlled by the `tinMatch` flag and reported via `tinMatchStatus`. - **TIN Match Status** An object containing the result of a TIN matching operation. - **TIN Type** Specifies which type of TIN was provided in the form. Expected values: `SSN`, `EIN`, or `ITIN`.