The form W-9 is a document used by the Internal Revenue Service (IRS) in the United States to collect information from individuals or entities who are required to report their income to the IRS. The term “form W-9” refers to the specific form number assigned by the IRS for this purpose.
The form W-9 is used to request the taxpayer identification number (TIN) of the individual or entity, which can be either a Social Security Number (SSN) or an Employer Identification Number (EIN). This information is necessary for the IRS to accurately identify and track the income and tax obligations of the individual or entity.
The form W-9 is typically used by businesses or organizations that make payments to individuals or other businesses, such as independent contractors, freelancers, or vendors. These payments may include income from services rendered, rent, interest, dividends, or other types of income.
The form W-9 requires the individual or entity to provide their legal name, address, and TIN, as well as certify that the information provided is correct. This form is not filed with the IRS, but rather kept on file by the business or organization making the payments. The information provided on the form W-9 is used to generate a form 1099, which is used to report the income to the IRS.
It is important for individuals or entities to accurately complete the form W-9, as any incorrect or missing information may result in penalties or delays in receiving payments. The form W-9 is also used to determine if the individual or entity is subject to backup withholding, which is a percentage of the payment that is withheld and remitted to the IRS to ensure that taxes are paid on the income.
In summary, the form W-9 is a document used by the IRS to collect necessary information from individuals or entities who are required to report their income. It is used by businesses and organizations to accurately report payments made to individuals or other businesses and to determine if backup withholding is necessary.
