IRS consent W-9 is a regular form. It is provided by a variety of contractors. Individuals and legal entities receive an individual tax number and other information about their contractor. It is important for accounting.
Form W-9 applied for completing the 1099-MISC form at the end of the year. Another organization also exactly knows about payments they pay to their contractors. The document is submitted upon request of the counterparty.
According to the IRS, the blank is required for an individual or a company paying a tax on the contractor’s income. This approach is more commonly known as back-up. Taxpayers inform the organizations and persons about necessity of submitting. And their counterparties should receive tax deduction information.
Common questions about form
- Why and when do I need to resend W-9?
If the information on the counterparty (social security number, name or address) is changed, then constructor must send updated information to his counterparties.
- What are your actions in case of obtaining a document from an contractor unknown to you?
The counterparty is required to claim only from enterprises that are not its employees and receive dividends, interest, compensation and other income from it. If you do not cooperate with a particular firm, but it requires the submission of this document, ask for arguments on its claim. In the absence of material facts, you are not required to provide this information.
- I did not file W9: what effects?
If you receive a request from your counterpart about submitting a document, it is better to do this. If not, then you risk paying 28% of the revenue from operations with this company. Significant backup withholding tax doc, agree.
- How do I know if my W-9 form was approved?
Ask company that receives your document. It is an easy way. W-9 is a document that is simply filled in and is important in terms of presentation for both the contractor and its customer. And sometimes you must also submit application for reinstatement form.