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.[3]
Form W-9 is most commonly used in a business–contractor arrangement.[4] 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.[5]
Avoiding backup withholdingedit
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.[2] This is similar to the withholding exemption certifications found on Form W-4 for employees.
Financial institution–customer arrangementedit
Financial institutions sometimes send Form W-9 to a customer to request information. However, it is not necessarily required for the customer to fill out the form if the institution already has the requested information from when the customer opened an account.[5]
Employer-employee arrangementedit
In an employer–employee arrangement, Form W-9 and Form 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.[5]
However, an employer may still send Form W-9 to have the information on record that the payee doesn't need to be sent Form 1099.
Filing methodedit
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.[6]: 12
Deadlineedit
Some certified public accountants consider it best practice to ensure the completion of Form W-9 by payees before issuing any payments.[7]
There may also be a $50 penalty for each instance in which Form W-9 is not filled out.[8]
^"What Is IRS Form W-9?". 2015. Retrieved January 22, 2016.
^ abcFontinelle, Amy (November 24, 2015). "The Purpose Of The W-9 Form". Retrieved January 22, 2016.
^"2016 General Instructions for Certain Information Returns" (PDF). 2016. Retrieved January 20, 2016.
^Dyes, Cindy (December 28, 2011). "Collect Form W-9 Now!". Retrieved January 22, 2016.
^"What is IRS Form W-9?". 2015. Retrieved January 22, 2016.
April 18, 2024
form, redirects, here, other, uses, disambiguation, officially, request, taxpayer, identification, number, certification, used, united, states, income, system, third, party, must, file, information, return, with, internal, revenue, service, requests, name, add. W 9 redirects here For other uses see W9 disambiguation Form W 9 officially the Request for Taxpayer Identification Number and Certification 1 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 2 It requests the name address and taxpayer identification information of a taxpayer in the form of a Social Security Number or Employer Identification Number Form W 9 2011The 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 3 Contents 1 Use cases 1 1 Business contractor arrangement 1 2 Avoiding backup withholding 1 3 Financial institution customer arrangement 1 4 Employer employee arrangement 2 Filing method 3 Deadline 4 See also 5 External links 6 ReferencesUse cases editBusiness contractor arrangement edit Form W 9 is most commonly used in a business contractor arrangement 4 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 5 Avoiding backup withholding edit 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 2 This is similar to the withholding exemption certifications found on Form W 4 for employees Financial institution customer arrangement edit Financial institutions sometimes send Form W 9 to a customer to request information However it is not necessarily required for the customer to fill out the form if the institution already has the requested information from when the customer opened an account 5 Employer employee arrangement edit In an employer employee arrangement Form W 9 and Form 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 5 However an employer may still send Form W 9 to have the information on record that the payee doesn t need to be sent Form 1099 Filing method editForm 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 6 12 Deadline editSome certified public accountants consider it best practice to ensure the completion of Form W 9 by payees before issuing any payments 7 There may also be a 50 penalty for each instance in which Form W 9 is not filled out 8 See also editForeign Account Tax Compliance ActExternal links editFillable PDF version of IRS W 9 FormReferences edit Request for Taxpayer Identification Number and Certification PDF 2014 Retrieved January 22 2016 a b Internal Revenue Code 31 3406 h 3 Internal Revenue Code 1 6041 1 What Is IRS Form W 9 2015 Retrieved January 22 2016 a b c Fontinelle Amy November 24 2015 The Purpose Of The W 9 Form Retrieved January 22 2016 2016 General Instructions for Certain Information Returns PDF 2016 Retrieved January 20 2016 Dyes Cindy December 28 2011 Collect Form W 9 Now Retrieved January 22 2016 What is IRS Form W 9 2015 Retrieved January 22 2016 Retrieved from https en wikipedia org w index php title Form W 9 amp oldid 1190538907, wikipedia, wiki, book, books, library,
