The Internal Revenue Service adjusts more than 40 tax provisions every year. Although the updates on the forms mostly made to make them simpler and more efficient, sometimes the changes to the tax code may affect it as well. In 2020, two of the three work forms issued by the IRS have been updated.
Form W-2 and Form W-4 is usually updated before the new year begins. The IRS releases the forms in PDF format. Form W-9, on the other hand, isn’t updated every year. The last give revisions happened in 2018, 2017, 2014, 2013, and 2011.
With that being said, while Form W-2 and W-4 is updated each year, Form W-9 is updated on an extensive basis. The instructions for all the forms mentioned above exist on our website.
Purpose of IRS Work Forms
All of the work forms issued by the IRS are used for tax purposes.
Employers complete a Form W-2 for each employee they have to report wage, salary, or any other compensation paid to them as part of the employment relationship. Employees also need their W-2 completed by their employers to file their tax returns.
Under federal law, Americans must pay their taxes gradually throughout the year. Employees use Form W-4 to let their employers know how much tax should be withheld from their pay.
Form W-9 is simply the document an entity uses to request the TIN of another entity. For example, when companies hire freelancers or a private contractor to work for them, they must detail the amount paid to them on their 1099. As a result of that, the company needs the correct Taxpayer Identification Number of the contractor. Form W-9 is simply used to request it in these situations.