W9 Form Printable South Dakota – An Internal Revenue Service tax form called a W-9 is used to confirm the identity of a person’s address and name. A confirmation request can be made for either an U.S. citizen, or an alien resident. A W-9 form is also called a Request for Taxpayer Identification Number and Certificate form.
What does Form W-9 serve to do?
The information obtained on the W-9 form is often used to create a version of Form 1099. A 1099 form includes information regarding any earnings that might be received by the TIN holder that could not be reported on a W-2 form. This can include earnings that are part of a deal, certain real property transactions, dividends on investments, as well as other financial transactions.
Are you an independent contractor or employee?
Employers are required to withhold income tax and also 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 your employer will pay Social Security and Medicare taxes. If you are dismissed, you won’t be eligible to receive unemployment compensation.
Can I refuse to fill out the Form W-9?
Yes. If you do not respond to an legitimate request your client may withhold tax from your pay at the rate of 24%.10 The department that handles accounting may also consider you a hassle and tell the person you spoke to to not engage in further business with you. The IRS is obligated to businesses to obtain a completed form W-9 from every person who has paid more than $600 per year. The failure to comply could be a cause for penalties.
If you believe the person who requested the form isn’t legitimately soliciting it, even you are hesitant, it’s probably a good idea. Consult a tax professional if you have questions.
The Bottom Line
W-9 forms are used by independent contractors (also known as freelancers). It is crucial to fill out the form correctly, however, only if it is the correct form to submit and the request has been granted. W9 Form Printable South Dakota