Enrique,
The reason for the W-9 is two fold.
1- In states with the requirement to hold the deposit in a separate account(A Trust account per the Washington State Bar Pamphlet link below), you will need the W-9 to open the bank account.
2- In states that require interest to be paid on the deposit held, you need a W-9 to ensure the interest is reported on the 1099 to the correct social security number. (Which does not apply to Washington State)
Here's a quick excerpt from the landlord tenant pamphlet provided by the Washington Bar Association
http://www.wsba.org/~/media/Files/News_Events/Publ...
"Deposit Requirement
A landlord may require a deposit to ensure that the tenant takes care of
the unit and complies with the terms of the rental agreement. Deposit
requirements cannot be discriminatory, nor may a deposit be increased
to retaliate against a tenant. A nonrefundable fee cannot be called a
“deposit.” A refundable damage or security deposit must be distinguished
from nonrefundable cleaning fees.
If a deposit or nonrefundable fee is charged, the lease or rental
agreement must be in writing, and must include the terms and conditions
under which any deposit will be returned. A deposit cannot be withheld for
normal wear and tear. If a tenant pays a deposit, the landlord must provide
a document describing the condition of the rental unit. The landlord is
required to keep deposits in a trust account, and must also provide the
tenant with a receipt and the name and address of the depository. Any
interest earned on a deposit belongs to the landlord.
The landlord has 14 days after a tenant moves out to return a deposit,
or give a written explanation of why it (or any part of it) was not refunded.
If a landlord does not comply, the full amount of the deposit must be
refunded to the tenant, regardless of any claims by the landlord that the
tenant is not entitled to a refund."
Hope that helps! If your CPA provides any additional information, definitely share it!
Jake
