Form W9 is one of the simplest IRS tax forms but there are a couple of questions left unanswered. Find answers to your frequently asked questions on Form W9, Request for Taxpayer Identification Number.
Before we begin answering the commonly asked questions about Form W9, let’s see what it is used for.
Form W9 is an IRS tax form that is used for providing taxpayer identification number to the requester. It is used in any tax situation where another part’s taxpayer identification number is needed. The best example to this is the job between companies and freelancers.
When a company hires a contractor or a freelancer to do some work, the income paid must be reported in a different way than Form W2. The income can only be reported on Form W2 if the income is paid to an employee. Therefore, Form 1099-MISC must be filed to report income. Having said that, the information needed to file Form 1099-MISC must be provided to the payer. This is done by Form W9.
In any tax situation, if the taxpayer identification number whether it be in the form of Social Security Number or Employer Identification Number is needed, Form W9 must be requested and filed to provide it. It is easy to understand the use of Form W9 and so as filing it. After all, Form W9 is— without a doubt—one of the easiest tax forms you can get done.
Frequently Asked Questions About Form W9
Just like any other IRS tax form, there is a lot that goes into Form W9. It’s completely normal for anyone to have questions in their minds about Form W9. Whether you’re filing or requesting Form W9 now or in the future, here are our answers to most asked questions about it.
Is there a new Form W9 for 2021?
The IRS doesn’t update Form W9 every year because there is no need to. Form W9 is used for requesting and providing taxpayer identification number only. So do not expect a new Form W9 not only in 2021 but in the future. If the IRS renews Form W9, you can find it here.
Should I put my name or business name on Form W9?
When filing Form W9 for business, you should enter both your name and business name. Form W9 has two boxes for this. On Box 1, enter your name and on Box 2, enter your business name. If you don’t have a business name, you can leave Box 2 blank.
SSN or EIN on Form W9?
You can provide your Social Security Number (SSN) or Employer Identification Number (EIN) on Form W9. It is up to you to enter either one of them. If you’re filing Form W9 for yourself, enter your SSN or EIN if you’re filing it for business. However, either should be fine since the IRS is going to know that it is you.
Why file Form W9?
The IRS requires income paid to you to be reported. If you received income, you are likely to be requested Form W9 as you need to provide your taxpayer identification number. You will need to file Form W9 to provide information about yourself so the requester can fulfill their tax obligations such as reporting the income paid to you.
What is the penalty for not filing Form W9?
Form W9 is mandatory to file if the requester needs your taxpayer identification number. If it isn’t filed, you will be subject to a $50 penalty for each instance it isn’t provided. Also, there is the possibility of backup withholding. If the payer hasn’t paid yet, the payer can forward 28% of the earnings to the IRS to ensure you are up to your tax payments.
What is the Form W9 expiration date and does mine expire?
Form W9 doesn’t have an expiration date. On the upper left corner, you can see the date it is issued by the IRS. Regardless of when you file Form W9, it won’t be expired. However, if you are requested Form W9 by a business, entity, or organization for the first time in three years, you are required to file a new Form W9.
How to file Form W9?
There are plenty of ways to file Form W9. How you’re going to file it comes down to how you’re going to submit it to the requester. For the 2020 taxes you’re going to file in 2021, you can submit Form W9 online or by mail. Learn how to file Form W9 from the links below.