Why send w 9

Individuals need to fill out the W-9 if they work as a freelancer or independent contractor. They will also need to file a to the IRS at the end of the year for each business they provided products or services to.

Individuals may also receive a for other income, such as interest on investments or if you accept online payments via credit or debit cards. The form must be completed and filed with the IRS by January 31st whether you file by electronic or paper mail. The form you need to use will largely depend on who is requesting the information. If you are an independent contractor and the company you are working with needs information about you, then you need to submit a W If it is the federal government requesting the information, then you'll need one of the forms to report on your various income sources.

For employers, it is both the contractors and the federal government requesting information, in which case you'll need to submit two copies of a form. Find jobs. Company reviews. Find salaries. Upload your resume. Sign in. Career Development. What is a W-9? Name Address Social Security number Federal tax classification. For financial institutions you open new accounts or invest with For employers you contract with For individuals or organizations who cancel or clear a debt you owe them.

Tax deadline for a W If you're an employee, you should fill out Form W-4 , not Form W Here's an example of when an employer could legitimately change your status from employee to independent contractor. You're a computer programmer, and you're required to come into the office from 9 a. The company provides your desk and your computer.

Starting next month, you will be required to provide your computer. You will be able to work from home or whatever remote location you want, and you can complete the work during any hours you want, as long as your assignments are completed on schedule and you respond to work-related phone calls and emails on time.

Has the IRS sent you a letter telling you that you are subject to mandatory backup withholding? This might have happened if you didn't report all your interest and dividends on a previous tax return. If you haven't received this letter, and if you provide your tax identification number to the requester of Form W-9, then you are not subject to backup withholding.

If you are subject to backup withholding, cross out item two in part two of Form W-9 before submitting it. If you can hand off the document in person, that's ideal. Otherwise, one option is to use a free online service to encrypt your completed Form W-9 and email it securely to the requester. You could also use an encrypted file-sharing service. Another option is to send it through a service such as FedEx, UPS, or the postal service, though there is no guarantee your form will not be lost, stolen, or tampered with in transit.

There's also no guarantee that the recipient will store the form securely even if you send it securely, so you might want to ask about that in advance. If you're a sole proprietor, it probably isn't. If it's a corporation, it could be, if it qualifies for IRS tax-exempt status. If you are a sole proprietor, you can enter either one. Failure to comply can result in fines. If you think the person requesting the form has no business asking for it, though, refusal is probably a good idea.

If you're concerned, ask a tax professional what you should do. A bank, a brokerage firm, a lending institution that has canceled a debt you owe, or the issuer of a prize you have won all might ask. If you receive an email saying you won a prize for a contest you don't recall entering, you may not want to give that person a W An individual or entity Form W-9 requester who is required to file an information return with the IRS must obtain your correct taxpayer identification number TIN which may be your social security number SSN , individual taxpayer identification number ITIN , adoption taxpayer identification number ATIN , or employer identification number EIN , to report on an information return the amount paid to you, or other amount reportable on an information return.

Examples of information returns include, but are not limited to, the following:. Use Form W-9 only if you are a U. If you do not return Form W-9 to the requester with a TIN, you might be subject to backup withholding.

See Form W-9 and instructions here. Why go through the hassle and uncertainty of creating and sending a paper W-9 form. It is always free to create and send your W-9 form. W9manager is not just another blank PDF form site. Every step of the way has contextual help buttons tailored to your specific circumstance. The W-9 form is then electronically signed and sent securely sent to the requester. Because the W-9 also requires a Social Security number or tax ID, it should be guarded carefully to protect from identity theft.

They should also have concerns if they receive a W-9 form from a company for whom they are supposed to be working as a regular employee; the company may be trying to defraud them of benefits they are entitled to by counting them as an independent contractor.

If an LLC operates as an independent contractor for other companies, then it too must complete a W-9 form. To do so, the following special considerations should be taken for the form:.