W9 Form Colorado 2022 – An Internal Revenue Service tax form called a W-9 can be used to verify the address and name of the person. A confirmation form can be requested for either a U.S. citizen, or an alien resident. A W-9 form is also called an Application for Taxpayer Identification Number and certification form.
What’s the purpose of Form W-9? For?
The information gathered on the W-9 form 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 owner that is not typically listed on the W-2 form. This includes, but is not restricted to, income given to an individual through the terms of a contract or other real estate transaction; dividends paid against an investment; and other financial transactions.
Employee or Independent Contractor?
Employers withhold taxes on income as well as withhold and pay Social Security, Medicare, and unemployment taxes on employees. However, this won’t be the case if your are an independent contractor. This means that your employer will pay Social Security and Medicare taxes. If you’re dismissed, you won’t be eligible for unemployment compensation.
Can I refuse to complete Form W-9
Sure. Yes. The business is required from the IRS to request a completed Form W-9 from any person they pay $600 or more to throughout the year. Infractions to this requirement could result in penalties.
Refusing to fill out the form is a sensible option if you believe the requester isn’t qualified for making the request. If you’re concerned, ask an accountant to tell you what you need to do.
The Bottom Line
W-9 forms are for independent contractors, also known as freelancers. It is important to complete the correct form, but only if it’s the correct form to submit and the request is granted. W9 Form Colorado 2022