W9 Form Arkansas 2022 – A W-9 is an Internal Revenue Service (IRS) tax form that is used to confirm the name, address, and taxpayer identification number (TIN) to be used for work or other income-generating reasons. A confirmation request can be submitted for either a U.S. citizen, or an foreign resident. The form W-9 is also called an Application for Taxpayer Identification Number and certification form.
What’s Form W-9 Useful For?
The information obtained on the form W-9 is commonly used to make an equivalent of Form 1099. A 1099 form contains information regarding any earnings that might be received by the TIN holder , which is not typically listed on the W-2 form. This could include income earned as part of a contract, certain real property transactions, dividends on investments, and various other financial transactions.
Are you an independent contractor or employee?
Employers can withhold tax on income as well as withhold and pay Social Security, Medicare, and unemployment taxes to employees. If you’re an independent contractor, it will not. It means that you’ll have to pay for the employer’s share of Social Security and Medicare taxes as well as not be eligible for unemployment compensation if you are laid off.
Can I refuse to fill out the Form W-9?
Yes. Yes. The IRS is obligated for companies to obtain the W-9 form completed from anyone who pays at least $600 in the year. The failure to comply could be a cause for fines.
If you believe the person requesting the form doesn’t have a legitimate reason for soliciting it, even you are hesitant, it’s probably an excellent idea. If you’re concerned, talk to the tax expert for advice on what to do.
The Bottom Line
W-9 forms are designed for independent contractors, also called freelancers. It is important to complete the form correctly, however, only if it is the right form to be submitted and the request is granted. W9 Form Arkansas 2022