Is a W-9 required for exempt payees?

A W-9 form is typically required for all payees, including exempt payees, to provide their taxpayer identification information to the payer. However, exempt payees, such as certain government entities or nonprofit organizations, may not be subject to backup withholding. While they still need to submit a W-9 to confirm their exempt status, the form helps the payer comply with IRS regulations regarding reporting payments.