1. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 1 7400. Regulatory Reporting Guide, 7441 IRS Forms W-9 and 1099-MISC A. The Purpose of This Policy The purpose of this policy is to assure that the Company complies with Internal Revenue Service (IRS) regulations for reporting non- wage payments to some vendors. B. Overview of IRS Forms W-9 and 1099-MISCW-91099-MISC The IRS requires that organizations use IRS Form 1099-MISC to report non-wage payments to individuals and partnerships for services. The IRS uses this form to assure that individuals, sole proprietorships and partnerships report all of their income. Form 1099-MISC is similar to IRS Form W-2 used for reporting employees' annual wages. Organizations use Form W-9, Request for Taxpayer Identification Number and Certification, to request the Taxpayer Identification Number (TIN) from those to whom they make payments.IRS Form 1099-MISCForm 1099-MISCForm W-2Form W-9 Continue ►

2. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 2 7400. Regulatory Reporting Guide, 7441 IRS Forms W-9 and 1099-MISC C. Responsibilities The accounting administrator (or, in the absence of that position, the general manager) is responsible for determining and recording which, if any, of our vendors are subject to 1099 reporting. The accounting administrator is responsible for requesting completed Forms W-9 from vendors, receiving them and submitting those forms to the accountant. The accountant is responsible for preparing and distributing Form 1099-MISC by January 31 st for the prior calendar year every year. Forms W-9Form 1099-MISC Continue ►

3. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 3 7400. Regulatory Reporting Guide, 7441 IRS Forms W-9 and 1099-MISC D. Accounts-payable Procedures For each existing and new vendor (including travel agencies), record the vendor's status (that is, whether or not it is subject to 1099 reporting) in the accounting program before making any payments. Individuals, sole proprietorships and partnerships are subject to 1099 reporting; corporations (including Marin Management, Inc.) are not. Receive and keep on record a completed IRS Form W-9 for every vendor subject to 1099 reporting. Record the vendor's Social Security number or other identifying numbers from the Form W-9. Record payments for goods to those vendors separately from payments for services, because only payments for services are subject to 1099 reporting. If you need clarification of a vendor's status, submit IRS Form SS-8.IRS Form W-9Form W-9If you need clarification of a vendor's status, submit IRS Form SS-8 Continue ►

4. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 4 7400. Regulatory Reporting Guide, 7441 IRS Forms W-9 and 1099-MISC E. Reporting Procedures Prepare and distribute a Form 1099-MISC for annual non-wage payments over $600 total for every individual and partnership by January 31 every year. Prepare and distribute a summary Form 1096 by February 28 th or 29 th every year.Form 1099-MISCForm 1096 F. Recordkeeping Keep all Forms 1099-MISC and 1096 and W-9 for at least six years.Forms 1099-MISC1096W-9 End

5. FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. 5 7400. Regulatory Reporting Guide, 7441 IRS Forms W-9 and 1099-MISC