What is Form W-9?
Form W-9, Request for Taxpayer Identification Number and Certification, is used to collect a person or entity's Taxpayer Identification Number (TIN), typically a Social Security Number (SSN) or Employer Identification Number (EIN).
Who Needs to Complete Form W-9?
Individuals and businesses complete Form W-9 when requested by someone who needs to report payments to the IRS. Common situations include:
- Independent contractors and freelancers
- Vendors and suppliers
- Landlords receiving rent
- Anyone who will receive reportable income
Why Do Businesses Request Form W-9?
Businesses need Form W-9 to:
- Obtain the payee's correct TIN
- Verify the payee's name matches their TIN
- Determine if backup withholding is required
- Prepare Form 1099 at year-end
What Information Does Form W-9 Collect?
- Name (as shown on tax return)
- Business name (if different)
- Federal tax classification (individual, sole proprietor, C corp, S corp, partnership, LLC, etc.)
- Address
- Taxpayer Identification Number (SSN or EIN)
- Certification that the information is correct
When Should You Request Form W-9?
You should request Form W-9:
- Before making the first payment to a new contractor or vendor
- When establishing a new business relationship
- When a payee's TIN or name changes
- If you previously relied on a TIN the payee gave you orally
Is Form W-9 Filed with the IRS?
No. Form W-9 is for your records only. You do not file it with the IRS. However, you use the information from Form W-9 to:
- Prepare Form 1099 at year-end
- Report payments to the IRS
- Apply backup withholding if required
Backup Withholding
If a payee fails to provide a correct TIN or the IRS notifies you that the TIN is incorrect, you may be required to withhold 24% of payments as backup withholding.
Form W-9 vs. Form W-4
- Form W-9: Used for independent contractors and vendors (results in Form 1099)
- Form W-4: Used for employees (determines tax withholding from wages)
Official Source: IRS Form W-9
