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Whenever it hires an independent contractor or third party entity, such as a nonprofit, it should request a completed version of this form from the party. The payer then keeps the form on file and uses the information on it at year-end to make its report to the IRS. Place the nonprofit's official name and address in the proper places at the top of the W-9 form, not the name or address of the person filing out the form. Leave the space marked âDBAâ blank unless the nonprofit is operating under a registered trade name.
Withholding Tax on Raffle Prizes Regular Gambling Withholding: An organization that pays raffle prizes must withhold 25% from the winnings and report this amount to the IRS on Form W -2G. This regular gambling withholding applies to winnings of more than $5,000.eparate tax deposit s are required for p ayroll and non-p ayroll withholding. Be sure to mark the Form 945 checkbox on Form 8109, the Federal tax deposit coupon. The organization must list the EIN (employer identification number) of the organization conducting the raffle on Forms W-2G, 1096, and 945.