How do you explain what a w9 is?

How do you explain what a w9 is?

A W-9 form is an Internal Revenue Service (IRS) tax form that is used to confirm a person’s name, address, and taxpayer identification number (TIN) for employment or other income-generating purposes.

Who is required to fill out a w9?

Those who should fill out a W 9 are those who are working as independent contractors or freelancers, because the W-9 is the form used by the IRS to help gather information about such workers. The W-9 form is an informational reporting tax form, meaning that it provides information to the IRS about taxable entities.

Where do I get a w9 form?

Page 1

1. Form W-9. (Rev.
2. Request for Taxpayer.
3. ▶ Go to www.irs.gov/FormW9 for instructions and the latest information.
4. Give Form to the requester.
5. Print or type.
6. 1 Name (as shown on your income tax return).
7. (Applies to accounts maintained outside the U.S.)
8. 5 Address (number, street, and apt.

Can I refuse to fill out a W9?

If you don’t fill out a W-9 duly requested by an employer, partner or other entity duly entitled to your taxpayer ID information, you may be penalized $50 for each instance. You may also be subject to backup withholding, which means the payor will withhold 28 percent of your check and forward the proceeds to the IRS.

What is the exact purpose of a W-9 form?

The purpose of Form W-9 is to provide the TIN number needed to complete an “information return”. An information return, like Form 1099-MISC, is used to communicate to the IRS reportable payments made to certain parties in the normal course of business. A common reportable payment is one in excess of $600 paid to an independent contractor.

What does W-9 stand for?

W-9 stands for “IRS form to request a taxpayer identification number”.

What is the difference between a W-9 form and 1099 form?

The W-9 is the form that you will send to your contractors (or that will be sent to you by a general contractor or bank) to get their information. The 1099 is the form that you complete and issue

What do you need to know about Form W-9?

The W-9 is used to record the following information for an independent contractor or freelancer they are hiring: Contractor/freelancers name or business name (if different) Postal and/or physical address Type of business entity i.e. sole proprietorship, partnership, C Corporation, S Corporation, trust/estate, limited liability company or “other” Tax identification number (TIN); either an Employer Identification Number (EIN) or Social Security Number (SSN)