Understanding IRS Form W-9: Request for Taxpayer Identification Number
Essential for businesses and independent contractors to ensure proper income reporting and avoid backup withholding.
When Is Form W-9 Required?
- Independent contractors receiving $600+ annually
- Freelancers working for multiple clients
- Landlords collecting rental income
- Investors earning interest/dividends
- Vendors providing services to businesses
Key Information Required
| Field | What to Provide |
|---|---|
| Legal Name | Exactly as filed with IRS |
| Business Name | If different from legal name |
| Tax Classification | LLC, S-Corp, Sole Proprietor, etc. |
| TIN | SSN or EIN with proper formatting |
Critical Compliance Points
- Backup withholding applies if TIN is missing/invalid (24% rate)
- Must be re-signed annually for ongoing business relationships
- Electronic signatures are acceptable if proper controls exist
- Keep copies for 4 years for IRS compliance
Common Filing Mistakes
- Using nicknames instead of legal names
- Incorrect tax classification selections
- Omitting required exempt codes
- Failure to update after legal name/TIN changes
Incorrect W-9s can trigger IRS penalties up to $280 per form.
Related Tax Documents
- Form 1099-NEC (Non-employee compensation)
- Form 1099-MISC (Miscellaneous income)
- Form 1099-INT (Interest income)
- Form W-8BEN (Foreign account holders)
Need Professional W-9 Assistance?
KARME Tax Services helps with:
- Proper W-9 completion and verification
- TIN matching with IRS records
- Backup withholding resolution
- 1099 filing compliance
Call 972-519-0041 or Get Compliance Help
Same-day electronic W-9 processing available