Why do heirs have to fill W-9 when they get inheritance?

W-9 is generally used by IRS to collect personal data for taxation purposes. It is also crucial for companies when they complete 1099-MISC. You usually have to fill the form in case you work as an independent contractor and you’ve received more than $600 from a certain client during the year. Still, there are some other cases when you’ll deal with the document. One of them is when you inherit some property.

Why do I have to fill the form?

Your inheritance may be taxable or non-taxable, but the executor of a will is obliged to ask you complete the appropriate blank in both situations. Why it is so? Even if your inheritance is not taxable itself, it may include assets that generate income. IRS wants to get all the info about heir to be sure he’ll be paying all the taxes required in the future.

How to complete the document?

There are several steps you have to follow:

  1. Get the blank from the executor of a will or download W-9 newest version on IRS website.
  2. Enter you name and business name (if any).
  3. Choose business entity type by checking the appropriate box;
  4. Fill the “exemptions” part if necessary;
  5. Enter you full address, city, state and ZIP code;
  6. Give you TIN (Social Security Number for individuals);
  7. Sign the document.

Note that some states like New Jersey have form substitutes. They collect the same info but look a bit different.

How to send a completed blank?

In most cases it’s OK to use web version and file it online, but this time it’s better to deal with W-9 from 2019 printable. The document has to be delivered to the requester, so you have to complete several steps. Open W-9 form to print it. Then put a signature. The requester is the executor of a will, so you can whether use hand-to-hand delivery, post services or special delivery services.