IRS Form W-9 Request for Taxpayer Identification Number and Certification

Who Has to Fill Out a W-9 Form?

It is necessary to complete a blank W-9 Form given to you by a company you worked for if both parties were involved in a taxable transaction and the payment you receive is above $600. In case you are providing freelance services, a vendor, or a different type of non-employee, the payment you are supposed to receive will be heavily taxed unless the requesting party gets a taxpayer identification number from you along with appropriate certifications.

This request is also common in the banking industry - a bank or a similar financial facility gets the personal details of the taxpayer directly from that individual or the person appointed to represent the interests of the business. This will be necessary when you are opening a bank account. Later on, the financial institution will have to report the amount of dividends they paid during the year which means they need to have accurate details of the taxpayer at their disposal for numerous forms they file with the IRS. Make sure you only prepare the W-9 Form for business purposes giving it directly to the employee of the organization that requested it or mailing it to the address furnished to you - sometimes, scammers try to get your personal details in order to commit identity theft so be careful and keep track of all your projects and transactions.

If a taxpayer is an employee, then the W-9 Form is not applicable. In this case, a taxpayer is supposed to fill out IRS Form W-4 (Employee's Withholding Allowance Certificate), which is used only by employees to determine allowances.

What Is a Substitute Form W-9?

According to the Form W-9 Requester Instructions, it is allowed for the requester to develop and use a substitute Form W-9. This substitute form must contain substantially similar information to the official IRS version. The key things that it must clearly state are as follows:

1. A valid TIN.
2. The taxpayer is a U.S. citizen or other U.S. person (explained in the text below).
3. The FATCA code (if stated in the form) is valid.

Some states use a substitute to Form W-9 on a regular basis. Each substitute form says in which circumstance it's applicable. These states include:

• Alaska;
• Arizona;
• Hawaii;
• Maine;
• Montana;
• Minnesota;
• Nebraska;
• New Mexico;
• New York City;
• Virginia.

How to Fill a W-9 Form?

Follow these Form W-9 instructions to inform the requesting party about your taxpayer identification number and confirm there is no need to deduct 24% of the payment they owe you:

1. Write down your full name - it can be your own name you are going to replicate on the annual income statement or the name of your business you include in the tax paperwork. Additionally, you must indicate the trade name you are using. Include your mailing address, the number of the account if you have several accounts with the institution or company that requested your details, and the name and address of the requesting party.

2. Check the box that describes the type of entity you represent - for instance, you may be a sole proprietor or act in the name of a partnership, corporation, or trust. Explain why you are exempt from the required tax deduction by stating the code describing your status - see the full list of codes on the third page of the form and certify one of them is accurate for your business. If you are not exempt, cross out the line in question. You may also verify your exemption from the Foreign Account Tax Compliance Act reporting requirement by entering the code applicable in your case.

3. State your taxpayer identification number. Depending on your status, you may be obliged to indicate your social security number or employer identification number. Confirm the information you entered is correct, the requesting party cannot deduct taxes from their payment, you are a resident of the United States or an authorized representative of the organization registered in accordance with the laws of the United States, and the codes you have recorded are accurate.

4. Sign and date the document. Remember that you are not obliged to mail this statement to fiscal authorities - simply give it to the individual or organization that asked you to provide the details you listed in writing. It is the duty of the party that requested the information to retain a copy of the document as well as guarantee the safety of the confidential details you submitted.

W-9 Related Forms:

• Form W-9S, a Request for Student's or Borrower's Taxpayer Identification Number and Certification. This is an application which is supposed to be requested by an educational institution (a university or college) or a lender of a student loan from students or loan borrowers;
• Form W-9 (SP). This form is exactly the same as Form W-9, but it has been translated into Spanish

All three W-9 Forms contain the same amount of information and have equal legal force.