IRS Form W9 Pdf 2022 – An Internal Revenue Service tax form called a W-9 is used to confirm the name and address of an individual. The confirmation can be requested from an individual identified as a U.S. citizen or a resident in the United States or as an alien. Also known as the Request for Taxpayer ID Number and Certification Form, the W-9 can be requested.
What’s Form W-9 Useful For?
The information obtained on W-9 forms is frequently used to create an equivalent of Form 1099. The 1099 form includes information regarding the income earned by the TIN holder, which isn’t usually reported on the W-2. This includes income received as part of a contract, certain real estate transactions, dividends against investments, and various other financial transactions.
Independent Contractor or Employee?
Employers can withhold tax on income and withhold and pay Social Security, Medicare, and unemployment taxes to employees. If you’re an independent contractor it isn’t. You’ll be responsible for the employer’s portion of Social Security and Medicare taxes however you will not receive unemployment compensation when you’re laid off.
Do I have to sign Form W-9
Yes. If you do not respond to a legitimate request your client may withhold tax from your paycheck at the rate of 24%.10 The accounting department could also find you a pain and tell your contact to not continue business with you. The IRS has a strict obligation to companies to request W-9 forms that are completed from any person they pay more than $600 during the year. Failure to comply can result in penalties.
Refusing to sign the form is a wise choice if the requester isn’t qualified for making the request. Consult a tax professional if you have any concerns.
The Bottom Line
W-9 forms are meant for independent contractors, sometimes referred to as freelancers. It’s essential to complete the form correctly–but only if you’re certain that it’s the correct application form and that the request is legit. IRS Form W9 Pdf 2022