Entering false information constitutes an information return penalty, starting at $50 per erroneous information for the first 30 days. If the supplied false information hasn’t been corrected within 30 days, the penalty amount increases to $50 through August 1, then to $110 if it still hasn’t been corrected after August 1. In the case of a Single-Member Limited-Liability Corporation (SMLLC) that hasn’t elected to be treated as a corporation or a partnership, the IRS considers it a disregarded entity. In this instance, the SMLLC owner must enter their SSN into a Form W-9. If you are filing on behalf of your business or have been authorized by a business to file on their behalf, enter that business’s name.

Who Must Complete a W-9 Form?

• For Forms W-9 that are not required to be signed, the electronic system need not provide for an electronic signature or a perjury statement.
• This section is only needed if the business has multiple accounts.
• Form 945, Annual Return of Withheld Federal Income Tax, must be filed if the payer is required to deduct backup withholding.
• As this information may get logged into their accounting system when you get set up as a supplier in their records, this address may be used to furnish your 1099 or mail you other important tax documents.
• If a contractor cannot or refuses to provide a TIN, the IRS recommends initiating backup withholding until they provide one.
• It is expected that requests as part of normal business operating activities will be fulfilled.

Make sure to document all three attempts as proof that you requested the form. Insurance companies ask for W-9s to be filled out to ensure they have tax identification numbers on file, to report any income to the IRS, or to provide documentation of coverage to the IRS. But that does not mean you will receive a Form 1099 from them. In this section, you will provide your taxpayer identification number (TIN). As an individual or single-member LLC, this will usually be your Social Security Number.

Request for Taxpayer Identification Number and CertificationForm W-9 (Rev. October

Even if the contractor refuses to send a W-9, you must still fill out a form 1099 for them. Since some information will be missing, you cannot fill it out online. Use a paper form to fill out any information and write “refused” in the tax identification number (TIN) box. If you are an American citizen, freelance platforms require you to fill out a W-9 when signing up to report your income to the IRS.

Completing Form W-9

• Yes, a W-9 is most often used for individuals who are self-employed.
• Backup withhold on any reportable payments made to the payee’s account, regardless of whether the payee makes any withdrawals, beginning no later than 7 business days after you receive the awaiting-TIN certificate.
• Make sure to document all three attempts as proof that you requested the form.
• Forms W-9 showing an ITIN must have the name exactly as shown on line 1a of the Form W-7 application.
• The following payments generally are exempt from backup withholding.

An exemption from FATCA reporting (or lack thereof) does not affect backup withholding as described earlier in these instructions. The following are not specified U.S. persons under chapter 4 and are thus exempt from FATCA reporting. Certain payees are exempt from backup withholding with respect to the payments below, and should enter the corresponding exempt payee code on Form W-9. You may rely on the payee’s claim of exemption unless you have actual knowledge that the exempt payee code and/or classification selected are not valid, or if they are inconsistent with each other.

What is a W-9 form used for?

In addition, the W-9 may be a company’s primary means of obtaining your personal information. As this information may get logged into their accounting system when you get set up as a supplier in their records, this address may be used to furnish your 1099 or mail you other contribution margin important tax documents. A common disregarded entity type is a single-member limited liability company (SMLLC). Sole proprietorships and single-owner S corporations are similar in that income passes through to the single owner/shareholder, but they’re not generally thought of as disregarded entities.

Related Federal Individual Income Tax Forms:

When you begin working with a contractor or freelancer that you will be paying, you should request that the contractor complete a Form W-9 prior to starting any engagement. Failing to do so could prove troublesome after beginning the work. In addition, the form may include a specific set of instructions provided by the IRS. The information fedex w9 obtained on a W-9 form is most often used to create a version of Form 1099.

TURBOTAX DESKTOP DISCLAIMERS

• If backup withholding is required, this will need to be noted on the W-9, to properly inform the entity receiving the information of the need to withhold accordingly.
• If you receive a penalty notice, you may also have to send a solicitation to the payee.
• If the IRS deactivates the ITIN because it has expired, the ITIN may still be used on Form W-9.
• At the end of the tax year, the information contained on the completed Form W-9 gets used to prepare 1099 forms like 1099-NEC, 1099-MISC, 1099-INT, and 1099-DIV.

Companies hiring individuals with any self-employed status (e.g., gig worker, independent contractor) may request a W-9 form from them. If you refuse to fill out a Form W-9 in response to an entity with a legitimate request, the requesting entity must withhold taxes from your salary using a flat 24% rate. Individuals with a sole proprietorship status who have filed a Form SS-4 and received an Employer Identification Number have the option to enter their EIN instead of their SSN. If filing on behalf of a business, enter the business’s mailing address. Common trust funds, as operated by banks under section 584(a). Common trust funds are not taxable on their income; the amount received by the participants is taxed instead.