Can I charge someone for not returning a W-9 form?

An independent contractor should be requested to submit a completed W9 before it is time to issue him a form 1099-MISC, since the information from the first doc will be used to issue the second one. If business requests blank W-9 for NC from the contractor, but he does not send it, then according to the IRS, a business must withhold up to 28 percent of the payment amount until the contractor provides this completed form. In addition, without providing this one he will not be able to get 1099-K.

Information for the form submitter

There are cases when an independent worker receives a request for a business tax W9 from an unknown source. It should be noted that according to the law, he must provide this document to the business for which he performed freelance work. However, if someone unexpectedly asks him to use the blank, he should ask what is the reason. If the answer does not correspond to any reasonable cause, the person should not legally fill it out.

How to avoid the problem of requesting side

In this matter, it is important to avoid problems associated with the refusal to fill out this paper. If someone hires a freelancer or a contractor, hirer should ask him to complete the doc before he starts the job. If any of the contractors refuse to provide TIN, it would be reasonable not to have business relationship with such a person. If there are doubts about the authenticity of the information provided in the current W-9 blank, requester can check the social security numbers of this person in the Social Security Administration through the Internet.

Independent workers should be encouraged to send their completed 2019 w-9 print out in the safest possible way. Since the doc in the completed form includes confidential information – the social security number of the taxpayer. Such information must be reliably protected in order to reduce the risk of data getting to extraneous people.