Who Files a W9 Form

Form W-9 remains valid unless a change in circumstances renders the information on the form incorrect. For example, a change in the name or type of entity. Please note that a change of address does not require a new W-9. The W-9 is an Internal Revenue Service (IRS) form in which a taxpayer provides their correct Tax Identification Number (TIN) to a person or entity (Applicant for Form W-9) who must file an information return to report the amount paid to a beneficiary or any other amount that can be reported on an information return. A TIN can be a Social Security Number (SSN), an Individual Tax Identification Number (ITIN), an Adoption Tax Identification Number (ATIN) or a Federal Employer Identification Number (EIN/FEIN/FEIN/FEIN). When you start a new job, there is a lot of paperwork to fill out, from direct deposit documents and benefit deposits to your Form W-4. But if you`re an entrepreneur or self-employed, income tax works a little differently. You must continue to report your income to the IRS, and businesses that use your services must also report that income. This is where the W-9 form comes in. Form W-9 is a very simple IRS form with exactly one function. You can send your Tax Identification Number (TIN) – which is your Employer Identification Number (EIN) or Social Security Number (SSN) – to another person, bank or financial institution. What if your business is new and doesn`t have an ON? You can still fill out a W-9 form.

The IRS says you should ask for your number and write « requested » in the field for the TIN. You should get this number as soon as possible as you are subject to a backup hold until that time. You can apply for an EIN on the IRS website. For more information about backup retention, see the following instructions for Step 8, Part II. Form 1099 does not need to be issued until the minimum income threshold is reached, which is set at $600 for most other income for the 2020 and 2021 taxation years. Amounts below this threshold must be reported as income by the TIN holder, but do not require a Form 1099. Although employees are required by law to share certain personal information with their employers, an employee`s privacy is protected by law. An employer who discloses an employee`s personal data in an unauthorized manner can be prosecuted under civil and criminal law. UW only accepts current versions of Internal Revenue Service (IRS) or Wisconsin Department of Revenue forms.

These can be found on the IRS website under the irs forms and the Wisconsin Department of Revenue under the WI Department of Revenue (DOR) forms. If you`re suspicious of a W-9 that someone sent you, ask them what tax forms they want to send back to you after filling it out. If you don`t get a clear answer, talk to a tax professional. Keep in mind that the only reason someone would need a W-9 from you is because they need it to send you some kind of IRS form. Form W-9 senders and recipients have at least one thing in common: they must file their tax returns. From small one-person operations to the largest company, the end of the year marks long nights filling out forms and checking numbers to keep the IRS off his back. To compete with form W-9, the following information must be provided: Since the W-9 also requires a social security number or tax number, it must be carefully protected against identity theft. For similar concerns, one should hesitate if they receive a W-9 form from a source they are not familiar with.

They should also worry about receiving a W-9 form from a company they are supposed to work for as regular employees; The company may try to deceive them of the services to which they are entitled by counting them as independent contractors. Return your completed Form W-9 to the company where you were asked to complete it. Ideally, you deliver it in person to limit your risk of identity theft, but this method is often not practical. Mail is considered relatively secure. If you need to email the form, you must encrypt the document and your email message, and verify that you have the correct email address of the recipient three times before sending your message. Free services are available online to help you, but check their reputation before entrusting them with your documents. Typically, the company that needs to file a W-9 with the IRS will give you one to fill out. Well, if you carefully read the fine print of the W-9 instructions, it seems to indicate that most people don`t need to sign this form at all. You usually only need to sign it if the IRS has informed you that you have previously provided an incorrect TIN. Aside from the technical details, the person who asked you to complete Form W-9 will likely consider it incomplete or invalid if you have not signed it. The 1099 and W-9 forms go hand in hand.

Independent contractors complete the W-9 to confirm their tax responsibilities and provide information to their employers. In turn, employers use a contractor`s W-9 to fill out a 1099 that details the employee`s income. At the end of the tax year, the company you worked for uses your W-9 information to complete a MISC 1099. This form lists all payments made to you. A financial institution may also ask you to report interest, dividends and capital gains earned by its clients. If you complete a W-9 before working as an independent contractor for a company, you are not considered an employee, although you can perform the same type of work as just one. The differences can be quite subtle, but in general, independent contractors have more control over when and how they perform tasks, and don`t get any of the benefits provided by employees, such as contribution matching. B.401 (k) or health insurance .. .