Form W-9

Form W-9 is a United States tax form. Its full name is Request for Taxpayer Identification Number and Certification. A person or business uses this form when they must give information to the Internal Revenue Service (IRS).Internal Revenue Code § 31.3406(h)-3 

Form W-9 is not sent to the IRS. The business or person who asks for the form keeps it. They use the information to fill out Form 1099, which reports certain types of payments to the IRS.nternal Revenue Code § 1.6041-1 Accountants often ask people to complete Form W-9 before any payment is made. There may be a $50 penalty for not filling out the form when required.

 Uses 
Form W-9 is often used between a business and an independent contractor. If a business pays a contractor more than $600 in one year, the business must file Form 1099-MISC. To complete that form, the business may ask the contractor to fill out Form W-9. The business keeps the W-9 and does not send it to the IRS.

Form W-9 also helps a person avoid backup withholding. Backup withholding means that a payer must keep part of the payment and send it to the IRS. On Form W-9, a person can state that they are not subject to backup withholding, so they can receive the full payment.

Banks and other financial institutions sometimes ask their customers to fill out Form W-9. This usually happens when the bank needs updated tax information.

Employees do not use Form W-9. Employees fill out Form W-4, and employers report payments on Form W-2. Sometimes an employer may still use Form W-9 to confirm that a person should not receive a Form 1099.

 Filing 
People can complete Form W-9 on paper or electronically. Electronic filing must follow certain rules. For example, the system must show the same information as the paper form, record who sent the information, and allow an electronic signature.

 References 

Category:Documents
Category:Taxation in the United States