Form W-9
{{Short description|United States income tax form}}
{{redirect|W-9|other uses|W9 (disambiguation)}}
Form W-9 (officially, the "Request for Taxpayer Identification Number and Certification"){{cite web |url=https://www.irs.gov/pub/irs-pdf/fw9.pdf |title=Request for Taxpayer Identification Number and Certification |accessdate=January 22, 2016 |date=2014}} is used in the United States income tax system by a third party who must file an information return with the Internal Revenue Service (IRS).Internal Revenue Code § 31.3406(h)-3 It requests the name, address, and taxpayer identification information of a taxpayer (in the form of a Social Security Number or Employer Identification Number).{{Cite web |title=Do I need a W-9 for international contractors? |url=https://useme.com/en/blog/do-i-need-a-w-9-for-international-contractors/ |website=Useme.com |access-date=2025-06-20}} Form W-9 is intended solely for U.S. persons (including resident aliens and domestic entities). It is not applicable for foreign individuals or entities. In such cases, Forms W-8BEN or W-8BEN-E should be used instead.{{Cite web |title=Do I need a W-9 for international contractors? |url=https://useme.com/en/blog/do-i-need-a-w-9-for-international-contractors/ |website=Useme.com |access-date=2025-06-20}}
The form is never actually sent to the IRS; it is maintained by the individual who files the information return for verification purposes. The information on the Form W-9 and the payment made are reported on a Form 1099.Internal Revenue Code § 1.6041-1
Use cases
=Business–contractor arrangement=
Form W-9 is most commonly used in a business–contractor arrangement.{{cite web |url=https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-Is-IRS-Form-W9-/INF14813.html |title=What Is IRS Form W-9? |access-date=January 22, 2016 |date=2015}} Businesses can use Form W-9 to request information from contractors they hire. When a business pays a contractor over $600 during a tax year, the business is required to file Form 1099-MISC, a variant of Form 1099. To fill out Form 1099-MISC, the business may need to request information (such as address and Tax Identification Number) from the contractor, for which Form W-9 is used. The business does not send Form W-9 to the IRS.{{cite web |url=http://www.investopedia.com/articles/personal-finance/082714/purpose-w9-form.asp |title= The Purpose Of The W-9 Form |accessdate=January 22, 2016 |date=November 24, 2015 |last=Fontinelle |first=Amy}}
=Avoiding backup withholding=
Another purpose of Form W-9 is to help the payee avoid backup withholding. The payer must collect withholding taxes on certain reportable payments for the IRS. However, if the payee certifies on the W-9 they are not subject to backup withholding they generally receive the full payment due them from the payer. This is similar to the withholding exemption certifications found on Form W-4 for employees.
=Financial institution–customer arrangement=
=Employer-employee arrangement=
In an employer–employee arrangement, Forms W-9 and 1099 should not be used. Instead, the corresponding Form W-4 (to provide information) and Form W-2 (to report the amount paid) should be filed instead.
However, an employer may still send Form W-9 to have the information on record that the payee does not need to be sent a Form 1099.
Filing method
Form W-9 can be completed on paper or electronically. For electronic filing, there are several requirements. Namely, a requester who establishes an electronic filing system must ensure that the electronic system provides the same information as on a paper Form W-9, that a hard copy can be supplied to the IRS on demand, that "the information received is the information sent and […] all occasions of user access that result in the submission [are documented]", that the person accessing the system and providing the information is the individual identified on the form, and that an electronic signature is used.{{cite web |url=https://www.irs.gov/pub/irs-pdf/i1099gi.pdf |title=2016 General Instructions for Certain Information Returns |accessdate=January 20, 2016 |date=2016}}{{rp|12}}
Deadline
Some certified public accountants consider it best practice to ensure the completion of Form W-9 by payees before issuing any payments.{{cite web |url=http://www.logginscpa.com/2011/12/collect-w9/ |title=Collect Form W-9 Now! |accessdate=January 22, 2016 |date=December 28, 2011 |last=Dyes |first=Cindy}}
There may also be a $50 penalty for each instance in which Form W-9 is not filled out.{{cite web |url=https://turbotax.intuit.com/tax-tools/tax-tips/IRS-Tax-Forms/What-is-IRS-Form-W-9-/INF20088.html |title=What is IRS Form W-9? |accessdate=January 22, 2016 |date=2015}}
See also
External links
- [https://www.irs.gov/pub/irs-pdf/fw9.pdf Fillable PDF version of IRS W-9 Form]
References
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