What is Form W-9 and why do I need to complete it?
Form W-9, Request for Taxpayer Identification Number and Certification, is used to collect the taxpayer identification number (TIN) of U.S. persons, which can be a Social Security Number (SSN) or Employer Identification Number (EIN). This form is typically requested by entities required to file an information return to report various types of income to U.S. Federal and state taxing authorities.
Who is required to fill out Form W-9?
Form W-9 must be completed by U.S. citizens or other U.S. persons. For federal tax purposes, you are considered a U.S. person if you are (i) an individual who is a U.S. citizen or U.S. resident alien; (ii) a partnership, corporation, company, or association created or organized in the United States or under the laws of the United States; (iii) an estate (other than a foreign estate); or (iv) a domestic trust (as defined in Regulations section 301.7701-7). This form is typically requested by entities required to file an information return to report various types of income to U.S. Federal and state taxing authorities.
How do I determine my correct Taxpayer Identification Number (TIN)?
The TIN for an individual is typically their Social Security Number (SSN). For businesses, the TIN is typically the Employer Identification Number (EIN). Trusts and estates may also have an EIN. It is important to use the correct TIN that matches the name on your tax return to avoid discrepancies with the IRS.
What does "backup withholding" mean and how does it apply to me?
Backup withholding generally applies if the customer (a) fails to furnish its social security number or other taxpayer identification number; (b) furnishes an incorrect taxpayer identification number; (c) fails properly to report interest or dividends; or (d) under certain circumstances, fails to provide a certified statement, signed under penalty of perjury, that the tax identification number provided is its correct number and that it is not subject to backup withholding.
What are the consequences of providing incorrect information on Form W-9?
Providing incorrect information can result in penalties, including fines and the imposition of backup withholding on future payments. It is crucial to ensure that the information provided on Form W-9 is accurate and up to date.
Where can I find additional information or assistance with completing Form W-9?
For further guidance, you can refer to the instructions provided with Form W-9, visit the IRS website, or consult a tax professional. The IRS website provides comprehensive resources and FAQs to assist taxpayers with form preparation and submission.