The W9 Form is a United States tax form used to collect the taxpayer's identification number (TIN). It is typically completed by individuals or entities who are considered independent contractors, freelancers, or self-employed individuals. Here is some relevant content regarding who should complete the W9 Form for the year 2020:
1. Independent Contractors: Any individual who performs work for a business or client as a non-employee is generally considered an independent contractor. These individuals should complete a W9 Form to provide their TIN to the company or client that they render services for.
2. Freelancers: Freelancers, such as graphic designers, writers, consultants, or photographers, who work independently and are not employees of a company should complete the W9 Form. This form helps businesses collect the necessary information for reporting payments made to freelancers to the Internal Revenue Service (IRS).
3. Self-Employed Individuals: If you operate your own business or are engaged in a profession as a sole proprietor, you are considered a self-employed individual. Self-employed individuals should complete the W9 Form to provide their TIN to clients or businesses with whom they conduct business.
4. Contractors: Contractors who provide services to government agencies or businesses often need to submit a W9 Form. These contractors might include construction workers, maintenance service providers, or IT professionals. The form allows the government or business to report payments made to the contract worker to the IRS.
5. Participants in Financial Transactions: Some financial transactions, such as real estate transactions or investment account activities, may require the completion of a W9 Form. For example, if you sell real estate or receive income from an investment account, the entity processing the transaction may need your TIN to report any income or proceeds to the IRS.
It is important to note that although the examples listed above typically require a W9 Form, there may be other specific situations where this form is necessary. It is recommended to consult with a tax professional or the IRS for guidance if you are uncertain whether you should complete a W9 Form for the year 2020.