V:it United StatesWith tax season underway, it’s wise to start gathering the necessary information to avoid late fees.
Although employees usually have their income taxes withheld at the time of payment, employers have several additional forms to fill out, one of which is Form W-9.
What is W9?
Form W-9 is essentially an identification form used to collect your Taxpayer Identification Number (TIN) or Social Security Number (SSN). The form is important because it provides information about vendors, independent contractors, sole proprietors, or freelancers.
You’ll also need the vendor’s W-9 if you pay them anything above $600 during the fiscal year, you file taxes.
The W-9 form for 2023 can be accessed on the IRS website, where the organization also provides a comprehensive document on the details of the form and how to file the form.
Best practices for W9
One of the best practices when it comes to W-9 forms is to request an updated W-9 form every year. The other thing to remember is to request a Form W-9 from any vendor before making your payment.
Other things to remember are to carefully review the W-9 forms and make sure all the required boxes are properly filled out and that the taxpayer has signed the form.
This will also offer you a layer of protection should the IRS contact you about any incorrect information you may have entered when completing your tax return for the year.
What is W9 used for?
The best use of the W-9 form is to provide information about a particular vendor and certify its completeness.
Another use of the W-9 is that it also allows you to prove whether or not you need to provide information for particular vendors for each particular year.
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