What information should I add to Form W-9?
In 2013 the IRS released a new version of Form W-9. The new version is easier to complete and it takes the filler even less time to add all the required information. Form W-9 is still a request for the individual’s taxpayer identification number and its certification. The employer should send blank w9 to the independent contractors or other business entities in advance, so that they have enough time for preparing their tax returns. The earlier they receive the request, the earlier they fill out and submit it to the requester.
What things should be taken into account while completing Form W-9?
The Request for Taxpayer Identification Number and Certification is applicable only to self-employed contractors (freelancers) or sole proprietors who are not employees in the designated company.
By completing and signing the form the individual contractor certifies that the added taxpayer identification number is valid and correct. It can be a Social Security Number or Employer Identification Number (if the individual contractor owns a business). The signers also acknowledge that they are not subject to backup withholding. The backup withholding means that the employer has to withheld federal income tax from the sum of money paid to the individual contractor. It happens if the contractor add the incorrect taxpayer identification number to Form W-9 or didn’t fill out the form at all. Another important fact that should be taken into account when completing free fillable w 9: the individual contractor must be a US citizen or resident eligible to fill out the form. All the FATCA codes have to be correct. These are the main options for completing the form correctly.