If you’re a contractor and you get a Form W-9 from an individual or business who is not a client, don’t fill it out. Sending your Social Security Number (SSN) and other personal information to a stranger could be dangerous. Scammers will sometimes send individuals W-9s to collect their SSNs.

What to do if someone refuses to fill out a W9?

If you have requested a Form W-9 from a vendor or subcontractor, and that person has failed to provide it, the IRS requires that you immediately begin backup withholdings of 24% and that you report those withholdings on Form 945. You should continue backup withholdings until you are provided with a TIN.

Why would someone ask me to fill out a W 9?

IRS Form W-9 is most commonly used by individuals when they are working as a freelancer or independent contractor. If you ever find yourself filling out a Form W-9, it generally means that a business or person who is paying you money needs your Social Security number so it can notify the IRS of the amount.

How do you fill out a W9 form?

How to Fill out a W-9?

1. Print your name or business name in the space where it says “Name.” The name must match the name shown on your tax returns.
2. Check the box for “Individual/Sole proprietor” if you have not filed your taxes as a corporation, partnership or LLC.

Is a W 9 required by law?

By law, you are only obligated to provide a W-9 to parties that intend to pay you interest, dividends, non-employee compensation, or any other type of reportable income. If someone unexpected asks for a W-9, ask them why they need it.

What to do if you get Form W-9 to fill out?

You expected a Form W-4 instead. If you’re starting a new job and your employer hands you a W-9 to fill out, ask if you’ll be working as a self-employed independent contractor or as an employee. Employees complete Forms W-4, not Forms W-9, to set their tax withholdings.

What do you need to know about a W9?

A W-9 is a form that a vendor (someone being paid) gives to the payer so that they payer knows whether or not they need to issue a 1099 at the end of the year. A 1099 is the form that independent contractors and others may receive at the end of the year, similar to a W-2.

What can I do with my W-9 tin?

Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example: Income paid to you. Real estate transactions. Mortgage interest you paid.

Do you need to send a W-9 to the bank?

They’ll need you to send them a completed W-9 before they can send you a Form 1099-MISC form. You’ll need that to report your income to the IRS. Banks sometimes also need a W-9 when you open a new account with them.