A W-9 form is an official form designed by the IRS for employers or other firms to verify the valid taxpayer identification number (TIN) of the person who is required to file an information return with the IRS to report. The W9 form also shows the amount of income paid to you, real estate transactions, and the mortgage interest that is paid by you.
The W9 form is a known IRS form used for providing necessary information to a person or company that makes a payment to another person or firm. A common situation is when an individual works as an independent contractor for a business.
How do I fill out a W-9 form?
A W-9 form is a straightforward form, as all you need to do is just fill in your name, business name, tax classification, full address, and social security number. If you are a business owner, you will also fill out your employer identification number (EIN). Instead of your Social Security number.
Who needs to fill out a W-9?
People who need to fill out the W9 form are those who are working as independent contractors or freelancers. The W-9 is the form that is used by the IRS to help put together information concerning such workers. The W9 form is also an informational reporting tax form that gives out knowledge to the IRS about tax entities.
Is there a new W9 form for?
There is a W9 form online. The aim of the printable W-9 form is to offer an employer such crucial details about the individual contractor. This include the name, address, and TIN.
How do I fill out a W-9 form even if I don’t have a business?
If you don’t own a business but want to fill out the W-9 form, all you need to do is write your name the way it is shown on your tax return and enter your business name in the next box, but if you do not have a business name, you can leave this box blank.
How to fill out the W-9 form
- Print your name or business name in the field that states “name.”
- Check the box for individual or sole proprietor if you have not filed your taxes as a corporation, partnership, or LLC.
- Check the box for exempt payee only if you are positive that you are exempt from the backup holdback.
- Put in your current address in the space provided.
Furthermore, sign and date the W9 form. When you are finished, give out the form to the company or individual who issued it.
What happens if I don’t fill out a W9 form?
It is compulsory to fill out the W9 form, but if you don’t fill out the W9 form that has been requested by your employer, partner, or any other entity duly entitled to your taxpayer ID information, you may be fined $50 for each instance. You may also be subject to a backup held back. And this means the payer will hold back 28 percent of your check and forward the proceeds to the IRS.
