Guide to IRS Form W-9: Request for Taxpayer Identification Number

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Last Updated, Dec 19, 2023, 9:04 AM

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Independent contractors need to manage their self-employment taxes. They must also report their income and expenses differently than employees who receive W-2 forms. The payer takes the information from Form W-9 to make and send reports, such as Form 1099-NEC, to the IRS. These forms usually need to be submitted by January 31st, the year after the payments are made.

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The main purpose of the W-9 Form is to request for taxpayer identification number from the individual or entity to which your business has made any payments. TIN or taxpayer-identification number is a primary identification number assigned to business entities by the IRS. Form W-9 is used by business entities to request and solicit TIN information from the newly onboarded parties, i.e. vendors, contractors, freelancers, and other payees. As failure to submit Form W-9 can result in penalties for both payers and payees, it’s important that the form is submitted correctly. If you need further assistance, you can always reach out to a tax professional for personalized advice.

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Common mistakes include incorrect TINs, misspelled names, or wrong tax classifications. Let’s discuss the advantages of using form W-9 for regulatory reporting. Apart from using Form W-9 as an instrument for soliciting TIN information from the vendor, you can also use it to validate the following payee information.

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A tax extension gives you additional time to file your return.
Legal name changes require immediate updates, whether through marriage or other reasons.
If your small business is collecting W-9s, you should make sure to send them well before the 1099 deadline.
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what is a w9 tax form

The account number(s) section only applies if you need to send account information (like a brokerage account) to the recipient of form W-9.
Should any of these apply to your situation, you’ll need to provide a number or letter code from the instructions representing the reasons behind making this declaration.
The most common situation occurs when an independent contractor completes work for a company and receives payment.
Navigating the complexities of tax obligations can be daunting, especially when unexpected liabilities arise.
If you think you might be exempt but are not sure, it’s a good idea to consult a tax expert.
The form makes it easy to submit all your vital information to the client, so you can start working and they can start paying you.
Make sure you provide the right information, including the correct taxpayer identification number.

Because in today’s gig economy, chances are you’re working with more contractors than ever before. As a business owner or HR professional, you’re no stranger to the alphabet soup of tax forms. From W-2s and W-4s to I-9s and 1095-Cs, it can quickly become overwhelming. A TIN is your taxpayer identification number, which you’ll need to provide on Form W-9.

It is expected that requests as part of normal business operating activities will be fulfilled.
Someone might request a W-9 from you to ensure they have the necessary information for reporting payments made to you accurately to the IRS.
Pay special attention to the name and TIN fields, as these are the most common sources of errors on 1099s.
Failing to provide a requested W-9 typically results in backup withholding at the current rate of 24% on payments.
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Returning Form W-9

If you’re a freelancer or a career independent contractor, you’re probably familiar with a W-9 form. As far as tax paperwork goes, it’s one of the better ones because it generally means you’ve won a new client! The form makes it easy to submit all your vital information to the client, so you can start working and they can start paying you. Foreign individuals and entities face different documentation requirements than domestic payees.

what is a w9 tax form

Any address changes require prompt W-9 updates to prevent lost communications. Proper address documentation ensures you receive important tax documents and communications. S Corporations must meet specific shareholder qualifications, and partnerships apply to multi-owner unincorporated businesses. LLCs require additional classification information based on their chosen tax treatment. Completing Form W-9 accurately requires careful attention to each section.

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The best practice here is to always direct your contractor to the IRS website to download the most recent form, rather than saving it and sending it out yourself. While the form is officially titled Request for Taxpayer Identification Number and Certification, it is referred to in most circles as a W-9. And, if you’re hiring contractors in the United States, there’s one particular piece of paperwork you’ll need to become very familiar with the W-9. But just because you’re hiring contractors doesn’t mean you don’t have to get your paperwork in order. Join thousands of businesses and households who trust SurePayroll for their payroll and HR needs. Mastering the Maze of State Tax Extensions Navigating the labyrinth of state tax extensions can…

What if I’m collecting W-9s? Any tips on getting people to file?

To further protect your information, always make sure to securely submit Form W-9 to the requester. Payers need to request Form W-9 to be able to file IRS Form what is a w9 tax form 1099, which is required for reporting non-employment income of $600 or more. Attackers are sophisticated and can make a message look like it came from your bank or even your client. And if you get an email from the IRS, it’s definitely a phishing attempt, and you should forward the email to The IRS doesn’t initiate contact with taxpayers via email. If you think the person requesting the form has no business asking for it, though, refusal is probably a good idea.

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