W9 Form Printable Arkansas – A W-9 is an Internal Revenue Service (IRS) tax form which is used to confirm an individual’s name, address and taxpayer identification number (TIN) in order to prove work or other income-generating reasons. A confirmation form can be requested to either an U.S. citizen, or an alien resident. Also called the Request for Taxpayer ID Number and Certificate Form, the W-9 is available for request.
What is Form W-9 used for?
Most of the time, the W-9 data is used to make Form 1099. The 1099 form includes information regarding income earned by the TIN holder, which isn’t usually reported on the W-2. This includes, but is not restricted to, income received by a person as part of a contract as well as certain real estate transactions and dividends earned against an investment; and other financial transactions.
Are you an employee or an independent contractor?
If you’re an employee your employer is required to withhold income tax and withhold Social Security and Medicare taxes and also pay unemployment tax on your earnings. If you’re an independent contractor, it won’t. That means your employer pays Social Security and Medicare taxes. If you are laid off, then you won’t be eligible for unemployment benefits.
Do I have to sign Form W-9
Yes. Yes. The IRS has a mandatory obligation for businesses to collect a completed form W-9 from any person they pay at least $600 in the year. Failure to comply can be a cause for penalties.
Refusing to sign the form is a sensible option if you believe the requester isn’t qualified for signing it. If you’re worried, you can ask the tax expert to tell you what you need to do.
The Bottom Line
The W-9 form can be used by independent contractors (also called freelancers). It is important to complete the correct form, but only if you have the right form to fill out and the request is granted. W9 Form Printable Arkansas