Did you actually get a W-9? A W-9 is used to provide tax payer information to another person.
"
Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example:
- Income paid to you.
- Real estate transactions.
- Mortgage interest you paid.
- Acquisition or abandonment of secured property.
- Cancellation of debt.
- Contributions you made to an IRA."
But you should have gotten another form, such as a version of a 1099 that you would use, and yes, I do believe you have to pay income tax on that money, since you earned it back.
