Fillable Form W9

The W-9 is an IRS form that is used by businesses and corporations to receive important financial information about a person, who is usually a freelancer or an independent contractor. They utilize this to simply ensure that the information given by their contractors is accurate when they start to fill out the information return Form 1099-Misc. The 1099-Misc form is an information return required by the IRS that reports the total amount of payments that a person has received from another person, entity, business, or company during the year that they’ve provided services for them. This can range from things like rent, royalties, or even awards, but the most common use of this form is for people who work as an independent contractor or freelancer. These forms are also given to non-employees who do work for the company, such as cleaners and maintenance services. The information that was placed in the W-9 form by the contractor will then be used in the 1099-Misc form, after which it will be submitted to the IRS. Businesses are also required to report payments of $600 or more to a contractor during a tax year to the IRS using Form 1099-Misc. This is to ensure that the IRS knows who is being paid, how much they are being paid, and who owes the taxes.

To complete this form, businesses will need the information that the contractors have provided on Form W-9, including their name, address, and Social Security number or tax identification number (TIN). Neither the contractor nor the business should send Form W-9 to the IRS, as it is simply a tool to fill up Form 1099-Misc.

The W-9 form certifies that the TIN given is correct (or that the person is waiting for one), that the person is not subject to backup withholding, or that the person is exempt from backup withholding because they are an exempt payee, which means that all the information in the document must be completely accurate, otherwise the person shall be subject to the penalty of perjury. If they are subject to backup withholding, the company hiring the contractor will need to withhold income tax from the contractor’s pay at a flat 24%, which they will send to the IRS.

While the length of the form seems intimidating at first, it’s actually quite short and straightforward once you realize that three of its pages are only instructions and information about the form.

For information, you will need:

1. Your name

2. Your business name (Assuming it is different from your name)

3. The business entity (sole proprietorship, partnership, C corporation, S corporation, trust/estate, limited liability company or “other”)

4. The business TIN (or Social Security number, if you are a sole proprietor who doesn’t use a separate tax ID number).

5. Your address, including your zip code

You can also add your account number(s) and the requester’s name and address if you wish, but it is optional.

There are several candidates applicable that would need to complete the W-9 Form:

1. Independent Contractors
   By far the most common user of this form; as they work for an employer, but are not their employees. Independent Contractors do not receive company benefits that the employees enjoy, and they have to do all of their taxes on their own, but this also depends on whether or not they are working for an agency, as they can cover for the contractor’s taxes. They are also given a large amount of freedom on when and how to complete a task. Some examples of Independent Contractors include Professional consultants, Writers, Artists, and Actors

2. Freelancers
   Freelancers and independent contractors function quite similarly, and occasionally their terms are interchanged, but there are also some differences in the way they manage things. For instance, an independent contractor will most likely work with a single client for longer than a freelancer, while the freelancer will usually be handling multiple clients at the same time. They are also common users of the W-9 Form.

3. Limited Liability Companies (LLC)
   Most companies require applicable companies that they have done business with to provide a completed W-9. Thus, an LLC is required to submit a W-9 when requested.
   Therefore, most companies, large and small, require the applicable companies they do business with to provide a completed W-9. An LLC must submit a W-9 when requested, as only corporations can be exempt from most 1099 reporting.

Certain financial institutions, such as your bank, use W-9 forms to obtain financial information from customers to report interest or dividends. U.S. institutions use this information to report income, that was paid to you, to the IRS. Foreign financial institutions, meanwhile, ask you to complete Form W-9 to comply with FATCA reporting requirements, as FATCA requires that foreign financial institutions report certain information such as income of their U.S. clients to the IRS. You might be asked for Form W-9 when you’re opening an account.

You might be asked by your client to fill out a W-9 form if you are an Independent Contractor or are running a business.

Lenders who cancel your debts might ask you to complete a W-9 form.

Since form W-9 asks for sensitive information, such as your name, address, and TIN number. Ensure that you handle the information with care. Here are some substantial tips to protect your information in the form and, consequently, yourself:

1. Ensure that you know who is asking for your information for the W-9, why, and that they are trustworthy, as they will be receiving your tax information. If a person that you have had no business suddenly starts asking for you to fill out a W-9, do not fill it out and submit it, at least not without consultation from a tax professional first.

2. Do not just carelessly leave your W-9 anywhere, nor send it as an unsecured attachment in an email. The information contained in it should be kept private, as it is very sensitive. More secure methods, such as by mail, is recommended.

3. If you are a new employee and you are handed a W-9 form, this might be a red flag that the company you are working for is intending to pay you as an independent contractor rather than an employee, which means they won’t be withholding income or payroll taxes from your wages. You will also instead be filing your own taxes. Instead, the form you should be filling out is W-4.

4. Be aware of potential phishing scams via email. Many scammers attempt to disguise themselves as professionals that require your W-9 Form for business purposes, but will use your identity for criminal activity. Sending your W-9 Forms to an unverified identity may end up with you becoming a victim of identity theft and/or tax fraud. The thief may even open up a bank account under your name.

5. If you are unsure as to why you need to complete the W-9, ask what type of tax documents that the requester intends to hand in to you based on the information that you have placed in your W-9 form, so you’ll know what documents to expect when the information is used by them.

-The W-9 form is only applicable for U.S. citizens and resident aliens. If this is not applicable to you, do not use this form, or you may be subject to perjury. Instead, you will have to use form W8-BEN (if you are an individual) or W8-BEN-E (if you are an entity) which are its equivalent forms.

-Keep the form up to date! If you change your address, change your name legally or via marriage, or make other large business-related changes to yourself, make sure to update your W-9 form accordingly. 

-It is possible to receive multiple 1099-Misc forms per year, if you are to receive payments from multiple companies or people that surpass $600. If you receive less than that, however, you won’t be receiving a 1099-Misc. It’s actually possible to not receive a single 1099-Misc in a year, assuming that all payments made to you by these companies do not surpass $600. Despite that, however, you will still be required to report your income.

-Make sure to submit Form W-9 in a timely manner, otherwise, 24% of the amount paid to you may be subject to backup withholding. Meanwhile, foreign institutions may close your accounts and refuse to do business with you, as they would be unable to comply with FATCA requirements.

-Having accurate information in the W-9 form is essential. Ideally, the information on the form is being updated yearly. If you submit inaccurate or even falsified information, you can be charged for perjury or even face imprisonment. For example, failure to submit the correct TIN will subject you to a penalty of $50 for each instance it occurs, unless you can prove that it wasn’t done by willful neglect. If you make a false statement with regards to withholding, you will be charged $500.