The IRS Form W-9 is one of the simplest tax forms that is out there. It is used to request an individual or a company’s Taxpayer Identification Number. In most cases, freelancers and private contractors are the ones who use the form occasionally.
Other than these two, Form W-9 can be used at any time when a party needs a second party’s Taxpayer Identification Number. There are many occasions that someone can request a W-9. Employers who paid more than $600 throughout the year for services, rents, prizes, freelancers, and private contractors must file a 1099-MISC for each person. This requires that person’s Taxpayer Identification Number along with some other information.
Since both 1099-MISC and W-9 go hand in hand, you can’t complete a 1099-MISC without their required information. To get their required information, you can request a W-9 from them and the IRS requires them to provide it to you.
Not doing it so will bring a penalty to freelancers, vendors, private contractors, etc. The penalty amount for 2020 is $50 for each instance they fail to provide W-9.
Other uses of Form W-9
Unlike some might think, Form W-9 is required for business-to-business transactions where the transaction is more than $600 for that calendar year. So outside of these two parties, there are no requirements for either one of them to file a W-9 to anybody else.
Other than businesses, insurance companies may require a W-9. This is a common practice, especially with life insurances. The life insurance company may require the beneficiary’s W-9 before giving the insurance money.
Form W-9 2020 Instructions
Other tax forms usually get renewed but, Form W-9, Request for Taxpayer Identification Number and Certificate isn’t renewed every year. The latest change on W-9 occurred in October 2018. Till the IRS issued a new one, you can follow the instructions below.
If the IRS renews the W-9, we will replace the instructions according to the new form.
Box 1. Enter your name as seen on your income tax return.
Box 2. Business name or the disregarded entity name if it is different than Box 1.
Box 3. Select the appropriate federal tax classification for the person on Box 1. (Check only one box).
- Individual, Single-member LLC, or Sole Proprietor
- C Corporation
- S Corporation
- Trust or Estate
- Limited Liability Company (LLC)
- Enter the tax classification as C, S, or P.
- C: C Corporation
- S: S Corporation
- P: Partnership
Box 4. Enter any exemptions if it applies to you.
Box 5. Enter the number, street, suite or apt. no. on your address
Box 6. City, State and ZIP Code on the address
Box 7. Account number(s) if needed
Printable Form W-9 for 2020
Form W-9 is an IRS form so you can obtain it from the agency’s website. The form is displayed in PDF format so you can view, download, or print off of your browser without the need for third-party software.
Click here to reach the IRS page for Form W-9.
Once you get to the page, you can click the print button top right of the page. The Form is made up of 6 pages and the last 5 are instructions and other useful information. Assuming you won’t be needing them, here is how you print off only a selected page in Google Chrome.
After clicking the print icon, select Pages as custom and type in ”1”.
A completed Form W-9 doesn’t expire. However, it is required to get new a new W-9 from vendors who appeared for the first time in three years on an IRS B Notice list, when their information has changed, or on an IRS proposed penalty notice. So there is no need for you to complete a Form W-9 each year if none of these events occurred on your end.
However, some entities may require this every year to complete the new 1099-MISC form. Although it isn’t required, in this case, you might need to complete a brand new W-9.