W-9 Form: Form W-9 Internal Revenue Service(IRS)

W-9 Form: The Internal Tax Revenue is the service offered by Revenue authority in United States of Federal Government. IRS is the body behind Tax collections in the US and it is the sole body that administers Internal Revenue code. The IRS was originated by the Commissioner of Internal Revenue in the year 1862 in order to access the nation’s first income tax to raise the funds for American Civil War. Form W-9 is the form used in United States income tax system to file an information in return with Internal Revenue Service(IRS). US citizens need to pay the tax using your Taxpayer Identification Number and Certification provided in the w9 Form.

What is Form W-9 ?

Form W-9 is the most important application form that is to be filled by people who are working as a freelancer or independent contractor. If you are out to fill  W9 form, then it means that you are being paid by a business person for your needs which finally notices the IRS of the amount. Mostly business holder does not use this Form as it is designed for people who are working as a Freelancer or any other independent contractor like any employee. You will be asked to fill the W-9 Form  contract form when you or your business are subjected to provide contract services to any other company. Other company will use the information provided by your company to report the Internal Revenue Service i.e amount of income to be paid for you or your company. Sometimes bank authorities ask you to fill the application Form W-9 to check out the income you earned to IRS.

Independent Contractors and Employers:

People who are applying for Form W-9 without having a clear idea regarding IRS and its terms may not be able to differentiate between Independent Contractors and Employers. If you are filling theW-9 Form before entering into a company as an independent contractor, you will not be considered as an employee of any other company. Once you apply for W-9 Form stating your reason behind the form w9 filling, you will be subjected to the same position. People who are not aware of Form W-9 IRS form may not be able to understand the things going on around them. In fact, independent contractors will have more control over the company when compared to employees. All the benefits like Health Insurance will not be assured if you have been switched to an independent contractor. But being an employee, the benefits will be comparatively less to that of an independent contractor.

How to Request a Form W-9- IRS?

An applicant who doesn’t have an idea regarding Form W-9- IRS may not know the detailed procedure involved in requesting a Form W-9. Whenever you make payments to an independent contractor online, you will be able to find yourself on the other phase of the transaction to apply for Form W-9- IRS. Being an employee of a company, you need to request a w9 Form  and get a copy of it. Every individual working under independent contractor has to report the payments that you make 1099 Form and get it done on a W9 form.

Every employee is required to fill the W-9 form if you are paid with an amount of $600 or more by the independent contractor. Send the form to 1099 and IRS as well so that you will be done with your tax payments. To get Form W-9, you need to request your company or organization to issue a Form W-9. If your company does not issue the Form W-9- IRS or lag your request then get downloaded from IRS Website for free.

Complete Form W-9- IRS:

To submit the w-9 form, you need to fill all the details asked in the Form W-9- IRS. Before going to submit the form, you need to make sure whether all the fields are properly filled or not.

  • Enter you Name as shown on your income tax return and then type your Business Name/ disregarded entity name in the space provided.
  • Check the box for Federal Tax Classification and tick the option to which you belong.
  • Type in the blank provided if there were any exemptions by entering Exemption Payee Code or FATCA reporting code.
  • Enter your address by including the number, street, and apt or suite number, City, State and Zip code in the space given.
  • List account numbers if you would like to disclose(This choice is optional so you can leave it without filling).
  • Taxpayer Identification number(TIN) is to be entered in the space provided and then check out terms by filling all the details required.
  • If you are done with filling all the required areas then submit the w9 form to the requestor(Do not send to the IRS).

Submit Form W-9:

An employer who is done with filling W-9 form should submit the form to your Company HR department or HR officer. You can have an extra copy of your Form W-9 so that you can use it for reference during payroll process. Once you submit your Form W-9, then your request will be approved by the respective company as soon as possible.

Taxpayer Identification Number:

Those who have gone through Form W-9 will come across a TIN number. If you don’t know what TIN number is, then you need to have knowledge about it before submitting the form w9. After providing the Mailing address in the space provided, you will be asked to enter Taxpayer Identification Number. TIN is your Social Security Number that is to be entered in the space provided. You will be addressed with a TIN number which you need to type in the space provided. Enter your Employer Identification Number in the space provided if you are running your own business or company. Unless you fill the Taxpayer Identification number, you cannot submit the Form W-9.

Conclusion:

Any new receiver of Form W-9 from their employer may not find the ways to proceed for next step. So I have clearly provided the information regarding things to be done after getting issued with Form W-9. Contact us by commenting below if you have any doubts regarding Form W-9- IRS.

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