W9 Form Rhode Island 2022 – The W-9 form is an Internal Revenue Service (IRS) tax form which is used to verify the identity of a person’s address, name and taxpayer identification number (TIN) to verify employment or other income-generating purposes. It is possible to request confirmation by a person who is defined as a U.S. citizen or a person who is a resident alien. Also called the Request for Taxpayer ID Number and Certificate form, a form called a W-9 is available for request.
What is Form W-9 used For?
The majority of the time, the W-9 information is used to create Form 1099. The 1099 form provides information on any income that might have been received by the TIN owner that could not be reported on the W-2 form. This includes, but is not limited to, income received by a person as part of an agreement or other real estate transaction as well as dividends received from an investment; and various other financial transactions.
Are you an independent contractor or employee?
If you’re an employee your employer will withhold tax on income, withhold and pay Social Security and Medicare taxes and will also collect unemployment tax on your wages. 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 laid off, you will not be eligible for unemployment compensation.
Can I refuse to sign the Form W-9?
Absolutely. Yes. The IRS has a mandatory obligation for businesses to collect W-9 forms that are completed from anyone who pays more than $600 per year. You may be subject to fines if you fail to comply.
Refusing to sign the form is a good idea if you feel the requester has no business signing it. Consult a tax professional if you have any questions.
The Bottom Line
W-9 forms are used by independent contractors (also called freelancers). It is vital to complete the form in a timely manner, but only if you have the right form to fill out and the request is granted. W9 Form Rhode Island 2022