If you work as independent contractor, you’ve probably hears about w9 form. What is it? It’s a standard irs document that is aimed to collect data about taxpayers for further taxation purposes. But is tax form w 9 2018 compulsory to be filled? Let’s take a closer look on the whole issue.
- W9 form for business
The law stands that companies are obliged to inquire the form from every contractor they work with. Free W 9 form online includes info that they need for 1099-MISC, which is a part of their accounting. If the companies don’t do that, substantial penalties will follow.
- W9 for independent contractors
In case you’re a freelancer and you’ve received a legal w-9, you’d better fill it and send to the requestor. What may happen if you won’t do that? Well, you’ll become an object of backup withholding and 28% federal tax will be withdrawn from the income receive. It’ll last until you’ll complete the form and give your Taxpayer Identification Number to the company you’ve worked with.
As you can see, it’s really a compulsory thing to fill the form, in case the request is legal. Still, you’d better check why you have to complete w-9 before giving any personal info.