W9 Form Printable Colorado – An Internal Revenue Service tax form called a W-9 can be used to verify a person’s name and address. The confirmation is available for either an individual defined as an U.S. citizen or a person defined as a resident of another country. The form W-9 is also called the Request for Taxpayer Identification Number and Certificate form.
What’s the purpose of Form W-9? to do?
The W-9 information is used to create Form 1099. A 1099 form includes information on any income that might have been earned by the TIN owner that would not normally be listed on the W-2 form. This can include, but is not limited to, earnings that a person receives under an agreement; certain real estate transactions as well as dividends received from an investment; as well as other financial transactions.
Employee or Independent Contractor?
Employers can withhold tax on income as well as withhold and pay Social Security, Medicare, and unemployment taxes to employees. You won’t have to pay if you’re an independent contractor. That means the employer will be responsible for Social Security and Medicare taxes. If you are laid off, you will not be eligible to receive unemployment compensation.
Can I refuse to fill out Form W-9
Yes. If you don’t respond to a legitimate request, your client will withhold taxes from your wages at the rate of 24%.10 The accounting department could consider you to be a hassle and notify your contact not to do further business with you. The IRS is obligated for companies to obtain the W-9 form completed from each person who pays more than $600 during the year. If they fail to do so, it could result in fines.
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. If you’re worried, ask the tax expert for advice on what to do.
The Bottom Line
W-9 forms are for independent contractors, sometimes referred to as freelancers. It is important to complete the form correctly, however, only if you have the right form to fill out and the request has been granted. W9 Form Printable Colorado