W9 Form North Carolina 2022

W9 Form North Carolina 2022The W-9 form is an Internal Revenue Service (IRS) tax form which is used to confirm the identity of a person’s address, name, and taxpayer identification number (TIN) in order to prove work or other income-generating reasons. The confirmation can be requested for either an individual defined as an U.S. citizen or a resident of another country. Also known as the Request for Taxpayer ID Number and Certification form, the W-9 form can be requested.

What exactly is Form W-9 used to do?

The information obtained on W-9 forms is often used to produce a version of Form 1099. The form 1099 contains details about income received by the TIN holder, that is not typically listed on the W-2. This can include, but not limited to, earnings that a person receives through a contract as well as certain real estate transactions and dividends earned against an investment; and various other financial transactions.

Are you an employee or an independent contractor?

Employers will withhold income taxes and withhold and pay Social Security, Medicare, and unemployment taxes on employees. If you’re an independent contractor it will not. This means that your employer will pay Social Security and Medicare taxes. If you’re laid off, you will not be eligible to receive unemployment benefits.

Can I refuse to sign the Form W-9?

Yes. Yes. The IRS has a strict requirement to businesses to obtain the W-9 form completed from anyone who pays at least $600 in the year. You may be subject to fines if you don’t comply.

Refusing to fill out the form is a good idea if you feel that the person asking for the form has no right making the request. Contact a tax professional should you have any questions.

The Bottom Line

W-9 forms are used by independent contractors (also called freelancers). It is essential to fill out the form correctly, however, only if you have the right form to be submitted and the request has been approved. W9 Form North Carolina 2022