W-9 form is used by companies to get information about independent contractors they work with. It’s then used to fill 1099-MISC. Both parties don’t send the document to IRS. As an independent contractor you’ll provide your name, business name, address, SSN or TIN, entity type and backup withholding status via printable W-9 form or its online editable version. You won’t be asked to fill it, in case the annual payments from the company are in under $600.
But what if the document was already sent and certain data has to be updated. You’ll probably ask yourself do i have to reissue w-9 if something changes? Maybe there is another way to update my information? The fact is that a new document is required in most cases.
What can be changed and how?
There are several things that can be altered, including the following:
- your name;
- entity type;
- your TIN;
If anything from the mentioned list has changed, you should report it by sending a new W-9 to the requester. Note that even LLC type shift from S to P requires document updates. Still, there are alternative ways to send some data to IRS. For example, furnishing a new form is not the only method how can you change your address on W-9. IRS gives you several ways to do that, including 8822/8822-B form, writing to IRS or providing it in your tax return.
Why is it important to keep your data updated?
Independent contractors often underestimate the substantial consequences for not filling the form, providing false info on purpose or not keeping the document up to date. Here is a short list of possible inconveniences and penalties.
|№||The issue||Why it happened||Consequences|
|1.||The name differs from the one in IRS database||You haven’t updated your info||Various tax refund issues|
|2.||No data was sent to IRS||You didn’t submit a form or forgot to provide your TIN||$50 penalty|
|3.||Backup withholding info doesn’t correspond with the one in IRS database||You’ve made a mistake||$500 penalty|
|4.||The info is falsified||You’ve given wrong data on purpose||Civil or criminal penalties|
How to send a new document to the requester?
If you’re sure you have to update your information, you should fill a new W-9 and send it to the requester. You can get the blank on IRS website. The next step is to fill all the lines correctly. Make sure you choose secure ways to deliver the document, no matter it’s a printable or online version.