Generally speaking, you must obtain a W9 from any vendor you pay $600 or more to throughout the course of the year. Individuals, partnerships, LLCs, corporations, and other forms of organizations are included in this. However, it’s always preferable to err on the side of caution and request one if you’re unsure whether you need to receive a W9 from a specific vendor.
The W-9 form hasn’t undergone much modification throughout time, although the 2021 edition has a few minor updates. The addition of a checkbox for some exempt payees to indicate that they are exempt from backup withholding is the most significant change. Other modifications include a clarification about the use of a TIN in the name of a disregarded business and adjustments to the IRS’s contact information.
While sharing personal information online is never completely risk-free, submitting a W9 form online is usually secure. You can submit your information quickly and easily using secure online forms provided by a number of reliable businesses, including the IRS. Just make sure to connect to the internet securely and refrain from sending private data across unsecured networks. Do You Require a New W-9 Form Each Year?
Most of the time, you won’t need to complete a W9 form more than once for any vendor you operate with. You will need to complete a new form if your information changes, such as your name or TIN. Additionally, you might need to complete a new form if a vendor or client requests that you give them with updated information.
Now that you are familiar with the fundamentals of the W9 form, let’s go over how to complete it:
3. Fill in the relevant section with your TIN, which is typically your Social Security number.
5. Select the relevant checkbox to identify your tax status (e.g., company, LLC, or sole proprietor). 6. Check the appropriate option if you are exempt from backup withholding.
To sum up, completing a W9 form is a free process that can assist guarantee that you are paid accurately and on time. You can confidently submit the information required to complete the form by following the instructions provided in this article and using caution while giving out your personal information.
Anyone who pays you money that is not subject to withholding tax, such as a freelancer or independent contractor, should receive a W9 form from you. This covers compensation for goods or services, rent, or royalties. If you are receiving certain types of payments, such as interest or dividends, you might also be required to submit a W9.