Show the full name and address as provided on Form W-9 on the information return filed with the IRS and on the copy furnished to the payee. If the payee has marked their address “NEW,” you should update your records. If you made payments to more than one payee or the account is in more than one name, enter on the first name line of the information return only the name of the payee whose TIN is shown on Form W-9. You may show the names of any other individual payees in the area below the first name line on the information return. Forms W-9 showing an ITIN must have the name exactly as shown on line 1a of the Form W-7 application. If you are a PFFI reporting a U.S. account on Form 8966, FATCA Report, and the account is jointly held by U.S. persons, file a separate Form 8966 for each holder.

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Your Form W-9 is not included in your tax return, what is a w9 tax form and you do not need to directly send a copy of your Form W-9 to the IRS. Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, is commonly required for freelancers and independent contractors. Clients typically ask for this form to collect essential information needed for filing information returns with the IRS. A taxpayer can also be subject to civil penalties for providing incorrect information that leads to incorrect withholding. If the taxpayer makes a false statement that results in no backup withholding, they’re subject to a penalty of up to $500. Penalties get worse upon further non-compliance, as the taxpayer can be subject to criminal penalties in certain cases.

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Make sure you read the certification statements closely before you sign. These statements tell you that you should not have backup withholding unless you say otherwise. They also confirm that you are a U.S. citizen or a resident alien. In addition to being careful when sending a Form W-9, be respectful and considerate when storing it for independent contractors who work for you.

• Make collecting the form part of your standard onboarding process for all new payees.
• Report all federal income tax withholding from nonpayroll payments or distributions annually on one Form 945.
• The main difference between Form W-9 and Form W-4 is that Form W-9 is for independent contractors and other people who are not employees, while Form W-4 is for more traditional employment relationships.
• No, a W-9 is just an informational form used to collect a payee’s tax ID and certification.
• You should only consider refusing to send a Form W-9 if you suspect the entity requesting it may be illegitimate due to the sensitive nature of the personal information found on such forms.

Key Takeaways for Businesses

The purpose of a Form W-9 extends beyond just this single situation. A bank or financial institution relies on the receipt of taxpayer information in order to properly report Form 1099-INT, 1099-DIV, or 1099-B. A taxpayer may also be asked to furnish a Form W-9 to cancel debt, student loans, or real estate transactions. Companies who engage you as a contractor or make payments to you for services you provide will likely ask for a completed W-9. Likewise, banks, brokerage firms and other payers typically ask for a completed W-9 to prepare your 1099s to report items such as interest, dividends, cancellation of debt and more.

• You may provide certification instructions on a substitute Form W-9 in a manner similar to the official form.
• You should fill it out and send it back to the person who requested it as soon as you can.
• Form W-9 is used to provide basic taxpayer information so businesses can report taxable payments made to freelancers and contractors.
• When beginning to work as either an independent contractor or an employee, you should expect to fill out some paperwork providing your personal identifiable information.
• Payers may be required to withhold taxes to ensure that the IRS will receive income taxes that are owed to them.
• Mastering the Maze of Unpaid Tax Interest Navigating the labyrinth of tax obligations, including estimated…

By clicking “See Rippling,” you agree to the use of your data in accordance with Rippling’s Privacy Notice, including for marketing purposes. Basically, anytime you’re paying someone who’s not a full-time employee, there’s a good chance you’ll need to collect a W-9 from them. Read our article about getting in touch with the IRS for more information.

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In the next sections, we will clearly explain each part of the W-9 form. We will also provide simple steps on how to fill it out correctly. Otherwise, one option is to use a free online service to encrypt your completed Form W-9 and email it securely to the requester. An independent contractor who receives an unexpected W-9 should hesitate before filling it out and research whether the requester has a legitimate reason to ask for this form.