Why is my client asking for a W9?

The IRS uses 1099-MISC forms to make sure people properly report their income. To prepare a 1099-MISC, the company needs your name, address and tax ID number. When the business asks you to provide a W9, they are simply ensuring that they have accurate information for preparing form 1099-MISC.

What do you do when someone asks for a W9?

If someone’s asking you for a W-9, they need it to send you Form 1099, which you’ll need to report certain kinds of income to the IRS. It’s in both your interest to get these forms in as soon as possible. Although there’s no official deadline for filing W-9, you should fill it out as soon as you get one.

How do I get a W9 for a client?

How to Get a W9. You can access tons of basic tax forms on the IRS website. If your client asks you for a W9, play it cool and say, “Sure, no problem!” Next, pop onto the IRS website and download the most recent version here.

What triggers a W9?

Generally, banks request a W-9 form when they issue income to you. Typically, the income is interest or dividends, and the bank issues a 1099 form to report the income to the IRS. Your bank includes your tax ID number on the 1099 form so that the IRS knows who received the payments.

How do you fill out a W9 if you don’t have a business?

You must write your name as it is shown on your tax return. If you use a middle initial on your tax return, use one on Form W-9. The next box asks for your business name. If you do not have a business name, you may leave this box blank.

Who needs to get a W9?

In general, W-9s are required only for business-to-business relationships where more than $600 is paid in the calendar year. The $600 rule applies to labor and services. For direct sales, a W-9 is required for total purchases over $5,000.

What happens if I’m asked to complete a W9?

The same applies to Real Estate Brokers assisting you with the sale or purchase of US real property. 4. What happens if I’m asked to complete Form W9 and I’m not a US person? Form W9 is intended for US persons, as explained in question 2. The equivalent form that applies to non-US persons is W8-BEN (for individuals) and W8-BEN-E (for entities).

When to ask for a Form W9 from a vendor?

Enact the best practice of asking for a Form W9 at the beginning of every new vendor relationship. Ask for the completed form before you release payment to the vendor. This way, if the vendor refuses to complete the form you can withhold taxes from their payment and remit that money to the IRS.

When to use Form W-9 for Taxpayer Identification Number?

Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example:

When to request a Form W-9 from a pffi?

For more information, see Regulations section 1.1446-1. A participating foreign financial institution (PFFI) should request Form W-9 from an account holder that is a U.S. person. If an account is jointly held, the PFFI should request a Form W-9 from each holder that is a U.S. person.

When to ask a company for a W-9 number?

The Request for Taxpayer Identification Number and Certification, also called Form W-9, is a tax document that you can use to collect a contractor’s tax information. By law, contractors must complete this form and submit it to you after performing services for your business. You can prepare and file your tax returns with…

What do I need to fill out a W9 form?

A W-9 is an IRS form that asks you for information that your client will need in order to issue you a 1099, which is a form YOU need when you file your taxes. Below, I’ll walk you through the steps on how to fill out your W-9 as a freelancer.

Do you have to file a W-9 with a contractor?

By law, contractors must complete this form and submit it to you after performing services for your business. You can prepare and file your tax returns with the information the provided on the form.

Do you need a tin to file a W-9?

Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example: About Form W-9, Request for Taxpayer Identification Number and Certification | Internal Revenue Service Skip to main content