Who can fill out a W-9 form. The main requirements

Every person who works must pay taxes, it doesn’t matter whether he is an employee or an independent contractor. One of the ways to report the worker’s yearly income is a W-9 form. It requests for Taxpayer Identification Number (TIN) and Certification. 

Who needs to fill W9 out?

Usually, employers need it to get the TIN from their employees who should withhold taxes from their income, and at the end of the tax year, the company or employer uses the information, written in the application to complete a 1099-MISC. The ones who fill out this kind of document can be: 

  1. The citizen of the United States of America. The person who was born in the USA and got its citizenship or the one who moved to America and got the residence permit.
  2. If the company established a policy that indicates who is authorized to sign the form on its behalf. The employee also must have the agreement of the organization to sign a W-9 on its behalf. Such an agreement can be written or oral.
  3. Freelancers and consultants. If you are a self-employed worker, you can be asked to report your yearly income. But only in the condition if you’re income of the year is over 600 USD and you haven’t been hired as an employee. 
  4. Non-profit organizations. Usually, such kinds of organizations are tax-exempt by IRS, but if your organization gives services to another business, you may be asked to complete a form that you need to provide to the person or company who requested it. 

Has the process of filling out a W-9 changed in 2020? 

The process in 2020 is the same as always. You should fill it out on the official website of the IRS, write the name of the business and address of the reporting entity, and put the e-sign in the end. It’s not necessary to send the completed form to the IRS.