How does W-9 tax form work?

The Request fro Taxpayer Identification Number and Certification is a standard IRS document that requests your TIN and other personal information. Let’s find out why it’s needed and how the paper is used for taxation purposes.

How do W-9 taxes work?

Internal Revenue Service uses the form to make sure you pay all the taxes you should. The paper itself doesn’t contain any data about payments, but it requests your TIN and other personal information. The payer who has purchased services from you receives this data and uses it to complete the appropriate 1099. This paper reports all the payments that were made to you and the amount of money you’ve received. So, IRS will know how much you’ve earned in the end. The main purpose of W-9 is just to make sure your TIN suits the records in the Internal Revenue Service database.

Except TIN, the paper asks for your legal name, address, entity type and signature. You should be especially attentive with W-9 tax classification for LLC. Make sure you choose the right LLC type from these options:

  • single member;
  • C – C Corporation;
  • S – S Corporation;
  • P – Partnership.

When all the fields are completed, sign the blank and put a current date.

How to get the blank to complete?

You can find the latest 2020 free PDF on our website. Just create W-9 online, enter all the information electronically, edit the document and then sign it with digital signature. Send the paper to the recipient using a trustworthy email service.