W9 Tax Form 2022 – A W-9 form is an Internal Revenue Service (IRS) tax form used to verify a person’s name, address and taxpayer identification number (TIN) to verify employment or other income-generating purposes. A confirmation form can be requested for either an U.S. citizen, or an foreign resident. The W-9 form is known as A Request for Taxpayer Identification Number and the Certification form.
What Is Form W-9 Used To Do?
The information provided on W-9 forms is often used to produce an equivalent of Form 1099. The 1099 form contains information about income received by the TIN holder, which is not usually listed on a W-2. This includes earnings received as part of a deal, certain real estate transactions, dividends paid against investments, as well as other financial transactions.
Independent Contractor or Employee?
If you’re an employee your employer is required to withhold income tax, withhold and pay Social Security and Medicare taxes and also pay unemployment tax on your wages. This isn’t the case if you’re an independent contractor. That means the employer will be responsible for Social Security and Medicare taxes. If you are dismissed, you won’t be eligible for unemployment benefits.
Can I refuse to fill out Form W-9?
Yes. If you decline to respond to an legitimate request, your client may withhold tax from your earnings at a rate of 24%.10 The accounting department could consider you to be a hassle and advise your contact to refuse to engage in further business with you. The IRS is obligated for companies to obtain an official form W-9 from each person who pays $600 or more during the year. Failure to comply can be a cause for fines.
Refusing to fill out the form is a sensible option if you believe the requester has no business signing it. Contact a tax professional should you have any concerns.
The Bottom Line
The W-9 form can be used by freelancers (also called freelancers). It’s essential to complete the form correctly, but only when you’re certain it’s the proper form to fill out and that the demand is genuine. W9 Tax Form 2022