W9 Form Vermont 2022 – A W-9 is an Internal Revenue Service (IRS) tax form that is used to verify the identity of a person’s address, name, and taxpayer identification number (TIN) to verify jobs or other reasons that generate income. This confirmation can be requested by a person who is defined as an U.S. citizen or a person who is a resident alien. Also known as the Request for Taxpayer Identification Number and Certificate form, the W-9 form can be requested.
What’s the purpose of Form W-9? to do?
The W-9 data is used to create Form 1099. The 1099 form provides information regarding any income that could have been earned by the TIN holder , which is not typically listed on the W-2 form. This can include, but not limited to income received by a person under a contract and certain real estate transactions or dividends on an investment; and other financial transactions.
Are you an independent contractor or employee?
Employers are required to withhold income tax and withhold and pay Social Security, Medicare, and unemployment taxes to employees. You won’t have to pay if you’re an independent contractor. This means that you’ll be accountable for the employer’s share of Social Security and Medicare taxes but you won’t be eligible for unemployment insurance should you be laid off.
Can I refuse to sign Form W-9?
Yes. If you refuse in response to a legitimate request the client can withhold taxes from your wages at a rate of 24%.10 The accounting department might consider you to be a hassle and notify your contact to refuse to engage in further business with you. The IRS is obligated for companies to obtain a completed form W-9 from anyone who pays $600 or more during the year. The failure to comply could result in fines.
Refusing to sign the form is not a wise choice if the person who requested the form is not legally entitled to making the request. If you’re worried, ask a tax professional about what you can do.
The Bottom Line
W-9 forms can be used by independent contractors (also called freelancers). It’s important to fill out the form correctly, but only when you’re confident that this is the correct form to submit and the form is legitimate. W9 Form Vermont 2022