W9 Form Printable 2021 – An Internal Revenue Service tax form known as a W-9 is used to verify the address and name of the person. The confirmation is available by a person who is defined as an U.S. citizen or a one who is considered to be a resident or an alien. Also called the Request for Taxpayer ID Number and Certification form, the W-9 form is available for request.
What Is Form W-9 Used For?
The data gathered from the W-9 form is often used to create an equivalent of Form 1099. The form 1099 contains details about income received by the TIN holder which isn’t usually reported on the W-2. This includes income received as part of a contract, certain real property transactions, dividends on investments, and various other financial transactions.
Are you an employee or an independent contractor?
Employers can withhold tax on income as well as withhold and pay Social Security, Medicare, and unemployment taxes on employees. This isn’t the case if you’re an independent contractor. That means your employer will pay Social Security and Medicare taxes. If you are laid off, you won’t be eligible to receive unemployment benefits.
Can I refuse to complete Form W-9
Yes. If you decline to respond to an legitimate request, the client can withhold taxes from your pay at a rate of 24%.10 The department that handles accounting might be able to see you as a nuisance and tell your contact to refuse to engage in further business with you. Businesses are under a strict obligation from the IRS to request a completed form W-9 from everyone they pay $600 or more to throughout the year. The IRS could impose fines on you in the event of not complying.
If you believe that the person who is requesting the form is not legitimately making the request, but it is possible to refuse, then refusing is an ideal choice. Contact a tax professional should you have questions.
The Bottom Line
The W-9 form can be used by freelancers (also called freelancers). It is essential to fill out the correct form, but only if it’s the right form to fill out and the request has been approved. W9 Form Printable 2021