W-9 - Request for Taxpayer Identification Number

A W-9 form, officially titled "Request for Taxpayer Identification Number and Certification," is a United States IRS (Internal Revenue Service) form used primarily to provide a correct Taxpayer Identification Number (TIN) to entities (such as employers or financial institutions) that are required to file information returns with the IRS. Entities can be required to file information returns to report certain types of payments made throughout the year.

Here are some key aspects of the W-9 form:

Purpose

 The W-9 is used to collect information from individuals or entities that receive income from a business or institution. The form requests information such as the name, address, and Social Security Number (SSN) or Employer Identification Number (EIN) of the individual or entity.

Use by Businesses

Businesses use the W-9 form to gather information from contractors, freelancers, and vendors in order to prepare various forms, most notably the Form 1099-MISC, which reports the non-employee compensation paid over the year.

Tax Reporting

The information provided on the W-9 is used to ensure accurate tax reporting to the IRS. For instance, it helps businesses determine if they need to withhold taxes for their payees and helps in the preparation of year-end tax documents.

Self Certification

By signing the W-9, the individual or entity certifies that the tax ID number they are providing is correct and that they are not subject to backup withholding due to failure to report interest and dividend income.

Privacy Concerns

Because it contains sensitive information, a W-9 should be handled with care to protect against potential identity theft.

Individuals and entities are usually required to fill out a W-9 when they work as a freelancer or contractor for a company, when they open a new bank account, or when they engage in certain financial transactions where proof of taxpayer identification is required.