IRS Form W-9
If you are an employer, the IRS Form W-9 is for your contract employees to fill out. This is how you obtain their Taxpayer Identification Number (TIN) so you can complete a 1099 Form. The 1099 form is used to report to the IRS any payments over $600 you make to contract workers.
If you are an independent contractor, you will be asked to fill out the IRS Form W 9 so you can get paid. It’s so your employer has your correct information. It consists of your name, current address, and your Social Security Number (SSN). In some cases, instead of the SSN it will be an Employer Identification Number (EIN).
IRS Form W 9 is really just an informational form. The employer requires it so they have the correct information on the employee when it comes time to file taxes with the IRS. An independent contractor receives a 1099-MISC instead of a W-2 at the end of the tax year. This form goes to the employee and to the IRS so everyone is on the same page as far as how much was paid and how much the employee owes the IRS.
IRS From W-9 is also required of people who will be receiving mortgage interest you paid, cancellation of debt, and IRA contributions.Comments and Questions