W-9 Form
What Is W-9 Form?
Form W-9 is a document used to provide a taxpayer identification number (TIN) to businesses or organizations that must report payments made to an individual or entity.
The information provided on a W-9 helps companies issue tax forms such as 1099 forms.
Why It Matters
A W-9 form ensures businesses have the correct taxpayer information when reporting payments to the IRS.
Without accurate W-9 information, businesses may be required to apply backup withholding, deducting taxes from payments.
How the W-9 Form Works
Individuals or businesses complete a W-9 form when requested by a payer.
The form typically includes:
- name or business name
- taxpayer identification number
- business classification
- address
The form itself is not submitted to the IRS. Instead, it is kept by the payer for tax reporting purposes.
Example
If a freelancer is hired by a company, the company may request a W-9 form so it can issue a 1099-NEC reporting the contractor’s income at the end of the year.
W-9 Form vs 1099 Form
- A W-9 form collects taxpayer identification information.
- A 1099 form reports payments made to the IRS.
FAQs About the W-9 Form
Who needs to complete a W-9 form?
Independent contractors, freelancers, and certain businesses often complete W-9 forms.
Is the W-9 sent to the IRS?
No. The payer keeps the form for recordkeeping.
Why might a company request a W-9?
To obtain the information needed to report payments to the IRS.
Related Terms
