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Another purpose of Form W-9 is to help the payee avoid backup withholding.The payer must collect withholding taxes on certain reportable payments for the IRS. However, if the payee certifies on the W-9 they are not subject to backup withholding they generally receive the full payment due them from the payer. [2]
The payer uses the information from your W-9 to file a 1099 form with the IRS. So while a W-2 is not at all like a W-9, it does serve a similar purpose as a 1099 because W-2s and 1099s are both ...
The form is never actually sent to the IRS, but is maintained by the person who files the information return for verification purposes. The information on the Form W-9 and the payment made are reported on a Form 1099. [46] The second purpose is to help the payee avoid backup withholding.
When you're hired as a contractor for a business or beginning work as a freelancer, you may be asked to complete a W-9 and provide it to the business that will be paying you. Here's why.
English: IRS Form W-9. This file is in PDF format. Portable Document Format (PDF) is a file format created by Adobe Systems for document exchange. PDF is used for ...
When you’re self-employed — you’ll mostly fill out IRS Form Schedule C on your tax return. This is where you’ll report your business income and expenses — including business deductions ...
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