Customer asked for a W-9

This blank is for customers or companies who request information before paying for service of independent contractor. Blank editable W-9 is IRS form, through which they find out what the applicant’s type of business is, as well as other important information: the address and EIN of his enterprise. As many internet users often ask can I use an EIN for a W-9 the answer is obvious now.

Why this information is needed?

There is a form 1099-MISC that should be filed by business if it has paid to the contractor for providing any kind of service, where the amount of money paid to the contractor was indicated. Therefore, individual entrepreneurs, freelancers and independent contractors who were paid using check, cash or direct deposit will receive 1099-MISC and W-9, in its turn, will allow quickly determining which of these workers need 1099-MISC.

If customers have to be audited in the future, they will have proof that all their contractors were taken into account, and those who did not receive the 1099-MISC were actually corporations. That’s the reason why customer requesting to fill this blank, as he must provide it to IRS if his payment to independent contractor exceeds $600 for work. This is a common tax disclosure process that applied the most of business transactions. This is a matter of income tax and in this case the customer will only accept a 2019 W-9.

Important things to know:

  • If an unknown business or person asks to fill it, there is no need to hurry providing such a confidential information to requester. First, it is needed to find out exactly who is asking to fill out the form, the reason for this request and find out how the tax information provided will be used.
  • While sending the form it is reasonable to use a reliable method. It should not be sent as an unprotected email attachment, it is better to use manual delivery, mail or send it as an encrypted file via email.
  • If the reason of request is still unclear, it is advised to ask what types of tax documents can be obtained when the information submitted in the doc will be used.