What Is Form W-9: Request for Taxpayer Identification Number (TIN) and Cert🥃𝄹ification?

Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, is an Internal Revenue Service (IRS) tax form that businesses use to collect information from independent contractors, freelancers, and other vendors. Businesses use this information to file paperwork with the IRS for tax reporting purposes.

When businesses pay a nonemployee, such as a 澳洲幸运5官方开奖结果体彩网:freelancer or 澳洲幸运5官方开奖结果体彩网:independent contractor, $600 or more in a year, they must file Form 1099-NEC, which is filled out using the information on Form W-9. Form W-9 can also be used to complete other versions of the 1099, such as the 1099-MISC, or Form 1098. Copies of the 1099 are then sent to both the IRS and the independent contractor; the independent contractor uses Form 1099 to complete their own tax return.

Who Needs to Fill Form W-9?

The most common reason for filling out Form W-9 is having income paid to you that you didn’t receive as an employee. This could be income as an independent contractor or f🌸reelancer; it could also be things like royalties or speaker fees for an event.

Other reasons you could be asked to fill out a W-9 include:

• Some types of real estate transactions
• Mortgage interest payments
• Cancellation of debt
• Contributions to an individual retirement account (IRA)
• Abandonment or acquisition of secured property

How to Fill Out Form W-9

Form W-9 is available♏ on the . It is filled out in three sections.

The first section ಞof the form asks for seven pieces of informa⛦tion:

1. Name as it appears on your tax return
2. Any business name or “disregarded entity” name (such as a 澳洲幸运5官方开奖结果体彩网:“doing business as” name) that is different from the name on your tax return. If you don’t do business under a different name, leave this section blank.
3. Federal tax classification. Check one box to choose individual/澳洲幸运5官方开奖结果体彩网:sole proprietor, 澳洲幸运5官方开奖结果体彩网:partnership, 澳洲幸运5官方开奖结果体彩网:C corporation, 澳洲幸运5官方开奖结果体彩网:S corporation, trust/estate, 澳洲幸运5官方开奖结果体彩网:limited liability company (LLC), or “other.” If you have never filed any paperwork to become a specific business entity, you are likely an individual/sole proprietor.
4. Exemptions you qualify for, which are listed by number code on page 3 of the form, including any exemption from 澳洲幸运5官方开奖结果体彩网:🐠Foreign Account Tax Compliance Act (FATCA) reporting. Most independent contractors and freelancers will leave this section blank.
5. Address for you or your business; usually the address that appears on your tax return
6. The name and address of the requester, which is optional but may be useful for your own records. (This section does not have a number.)
7. Account numbers, which may be necessary if the entity requesting your W-9 is a bank or brokerage. This section will not usually need to be filled out.

The second section, Part I, asks for your taxpayer identification number (TIN). This will be either your 澳洲幸运5官方开奖结果体彩网:Social Security number (SSN) or 澳洲幸运5官方开奖结果体彩网:empl෴oyer identification number (EIN).

Finally, in Part II, you mu🧸st certify under penalty of perjury that:

• You have given your real and correct TIN.
• You are not subject to 澳洲幸运5官方开奖结果体彩网:backup withholding.
• You are a U.S. citizen or other U.S. person.
• You have correctly entered any FATCA codes.

If the IRS has notified you that you are subject to backup withholding, cross out Item 2 under the certifications list. If you willfully and incorrectly represent this or any other information on your W-9, you may be subject to criminal or civil penalties.

What Happens After You Complete Form W-9

If you complete Form W-9, you do not need to send it to the IRS. Instead, submit it to the business that requested it. Use caution when transmitting it: The information on a W-9 is sensitive and should be handled with care by both parties to prevent 澳洲幸运5官方开奖结果体彩网:identity theft.

The business will then use the information on the form to fill out the appropriate Form 1099 or 1098. One copyꦬ of the 1099/1098 is sent to the IRS; the other will b💎e sent to you. You will then use this information to complete your income tax return.

Substitute Form W-9

The IRS allows someone requesting a W-9 to create and use their own version of the form rather than the one provided by the IRS, as long as it satisfies certain requirements. This is referred to as a substitute Form W-9. The substitute Form W-9 must be substantially similar to IRS Form W-9, including certifying under penalty of per🌞jury that:

• The payee’s TIN is correct.
• The payee is not subject to backup withholding.
• The payee is a U.S. person.
• Any FATCA code entered is correct.

The Bottom Line

IRS Form W-9 is used to share taxpayer information between two parties, ofte﷽n between a business and an independent contractor, freelancer, or vendor. It is used to ensure that any payments a business makes are properly recorded on Form 1099 or 1098 and then reported to the IRS as income.

A W-9 must be certified under penalty of perjury. Deliberately including false information on a W-9 could result in civil or criminal penalties. If you are unsure about how to correctly fill out your W-9, talk to an 澳洲幸运5官方开奖结果体彩网:accountant or other 澳洲幸运5官方开奖结果体彩网:financial advisor.