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The IRS requires that certain employers, banks and other corporate entities report income, interest and contributions paid to individuals. Form W-9 is the form which the IRS designates to be completed by the payee and returned to the payer.
Significance
Form W-9 is used to collect the identifying information that the payer will use when reporting the payment to the IRS.
Features
Form W-9 requires the input of a TIN (taxpayer identification number), address, business type (if applicable) and the signature of the payee.
Considerations
The only group of people not required to complete Form W-9 are foreign persons. They are required to use Form W-8 instead of W-9.
Warning
Refusing to provide your TIN to the person requesting it could result in a $50 fine. Inputting false information on form W-9 could result in a $500 fine.
Exemptions
Certain types of income are exempt from filing a W-9.
Source:
Resource:
IRS Form W-9
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