#w9 form

If you file your taxes in the US, you’re going to fill out a W9 form. This is how you fill out your typical run-of-the-milk individual W9 form. Just follow the instructions for each section of the form!

Your name (Don’t overthink it)

Ignore

Check individual/sole proprietor

Ignore

Your address (whatever is most permanent in your life)

Same as Part 5

Ignore

Part 1 + SSN

Sign, date and you’re done 😊

Introduction:

If your business frequently hires gig workers, independent contractors, or freelancers, you are likely familiar with Form W-9. However, if you're new to the business world or simply unaware of Form W-9 and its purpose, this comprehensive guide is for you. In this blog, we will answer all your questions regarding Form W-9, including its significance and who needs to file it. Let's dive in!

What is Form W-9?

W-9 Form, also known as "Request for Taxpayer Identification Number and Certification," is a document issued by the Internal Revenue Service (IRS). Employers use this form to gather taxpayer identification information from vendors for tax purposes. The information collected on Form W-9 is essential for preparing 1099 forms at the end of the tax year.

Backup Withholding

In certain cases, if a vendor is subject to backup withholding, the employer is required to withhold 24% of the vendor's income tax and remit it to the IRS. Backup withholding may be necessary if the vendor's Taxpayer Identification Number (TIN) is incorrect if the vendor fails to provide a TIN on their Form W-9, or if the vendor does not certify their TIN.

Who is required to complete Form W-9?

Typically, businesses that make payments to vendors or independent contractors are required to obtain a completed Form W-9. However, there are additional situations where banks and financial institutions may request Form W-9, such as when opening a new account, reporting interest income, distributions, real estate transactions, cancellation of debt, or acquisitions or abandonment of property.

How do I fill out Form W-9?

Form W-9 is a one-page document that requires specific information from the vendor. Here's a breakdown of the key fields:

Box 1: Enter the vendor's full legal name as it appears on their tax return.

Box 2: Enter the DBA (Doing Business As) name or disregarded entity name, if applicable.

Box 3: Select the appropriate business entity type based on federal tax classification.

Box 4: If you are exempt from backup withholding, enter the applicable exemption code.

Box 5: Provide the vendor's address, which should match the address on their tax return.

Box 6: Enter the vendor's Tax Identification Number (TIN), which can be their Social Security Number (SSN) for individuals or Employer Identification Number (EIN) for businesses.

Box 7: The account number field is optional and only necessary if account information needs to be provided.

When is Form W-9 due?

Unlike Form W-4, there is no specific deadline to request Form W-9 online. It is generally sent to the vendor upon their hiring date. However, vendors are advised to submit the form promptly upon receipt. Failure to file Form 1099 or submit a W-9 with incorrect information may result in penalties of $50.

How to Request Form W-9?

As a business owner, you will receive Form W-9 from your independent contractors or vendors. To request Form W-9, you can download a printable copy from the IRS website and provide it to your vendors. Alternatively, you can opt for an e-file provider like TaxBandits, which offers a comprehensive filing solution. TaxBandits allows you to request Form W-9 online.

Is your business involved in hiring gig workers, independent contractors, or freelancers? Then you most probably might come across Form W-9. In case you are someone new to business or still unaware of the Form W-9 and wonder what exactly it is used for? Who needs to file this form? Then this blog is for you. Here in this blog, we will be answering all of your questions regarding Form W-9 and more. So let's begin with one of the most obvious questions. What is Form W-9? IRS Form W-9 is also called “Request for Taxpayer Identification Number and Certification” As the name suggests, this form is used by employers to obtain taxpayer identification information from the vendor for tax purposes. Businesses use the information in the W-9 to prepare 1099 forms for the vendors at the year-end. Key Takeaway Backup withholding  If the vendor is subject to backup withholding, you are required to withhold 24% of the income tax from the vendor's paycheck and remit it to the IRS. You may also need to withhold taxes and remit the backup withholding taxes to the IRS under the following conditions.

If the IRS says the report TIN (Vendor)  is incorrect

If the vendor does not provide TIN in their Form W-9

The vendor did not certify their TIN

IRS tells the Vendor is subject to back withholding

Who is required to complete Form W-9?

Generally, businesses that pay vendors or independent contractors require Form W-9 from the vendor to complete Form 1099. However, there are some special conditions banks and other financial institutes request Form W-9 as follows

When you open a new account with them

To report the interest income, distribution, and real estate transactions.

Cancelation of debt 

Acquires or abandonment of property 

How do I fill out Form W-9?

Form W-9 is a single-page form that requires the following piece of information from the vendor. 

Box 1:  Enter the full legal name as it appears on their tax return.

Box 2:  Enter the DBA (Doing Business As) name or disregarded entity name. Box 3: Select the type of business entity according to federal tax classification 

Box 4: Enter the exemption code that applies to you if you are exempt from backup withholding. 

Box 5: Enter the address it can be your business address or home address. Make sure that the address entered must match the address in your tax return.

Box 6: Enter the Tax Identification Number (TIN). If you are an individual, enter your Social Security Number (SSN), and if you are a business, enter your EIN. 

Box 7: The account number field is an option and only applies if you need to send account information. When is Form W-9 due?

Like Form W-4, there is no specific deadline to request Form W-9 Online. It is typically sent to the vendor upon the hiring date. Although there is no specific deadline to report, employees should submit it as soon as they receive it. Failure to file Form 1099 to submit a W-9 or report incorrect information may result in penalties of $50.  How to Request Form W-9?As the business owner, you will receive Form W-9 from your independent contractor or vendor. To request Form W-9, you can download the printable copy of Form W-9 from the IRS website and send it to your vendor, or you can opt for any e-file provider service to request Form W-9 online. If you are looking for a reliable e-file provider to request Form W-9 online, TaxBandits is here to help you.

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? Your full ruling circle needs against go on the form. ? Your address needs to be on the W9 IRS form. ? Your social security include needs for exist on the form. ? Contractors need to place their Employer Identification Number<\p>

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