W9 Form Utah 2022 – An Internal Revenue Service tax form known as a W-9, is used to confirm the identity of a person’s address and name. A confirmation form can be requested for either a U.S. citizen, or an foreign resident. Also called the Request for Taxpayer ID Number and Certification form, a form called a W-9 is available for request.
What is Form W-9 used For?
Most often, the W-9 information is used to make Form 1099. The form 1099 contains details about any income that may have been earned by the TIN owner that could not be reported on the W-2 form. This could include, but is not restricted to, income that a person receives under a contract as well as certain real estate transactions; dividends paid against an investment; and other financial transactions.
Independent Contractor or Employee?
Employers are required to withhold income tax and also withhold Social Security, Medicare, and unemployment taxes on employees. You won’t have to pay if you’re an independent contractor. It means that you’ll have to pay for the employer’s share of Social Security and Medicare taxes but you won’t be eligible for unemployment compensation should you be laid off.
Can I refuse to fill out Form W-9?
Yes. If you refuse in response to a legitimate request, your client may withhold tax from your wages at 24%. 24%.10 The department that handles accounting might also consider you a hassle and notify the person you spoke to to not engage in further business with you. The IRS has a strict requirement to businesses to obtain the W-9 form completed from each person who pays $600 or more during the year. Infractions to this requirement could be a cause for penalties.
If you think the person requesting the form doesn’t have a legitimate reason for soliciting it, even it is possible to refuse, then refusing is a good idea. If you’re worried, you can ask an expert tax advisor for advice on what to do.
The Bottom Line
W-9 forms can be used by independent contractors (also called freelancers). It is essential to fill out the form correctly, however, only if it’s the right form to be submitted and the request has been approved. W9 Form Utah 2022