If you are not collecting a FATCA exemption code by omitting that field from the substitute Form W-9, see Payees and Account Holders Exempt From FATCA Reporting, later. Upon the completion of the information above, the taxpayer must sign the form under Part II (Certification). As Form W-9 requires listing a tax ID or Social Security number, both the person filling it out and the company receiving the completed form must guard it carefully during transmission and after receipt to protect against identity theft. Form W-9 is only used if the taxpayer is a U.S. person (including a resident alien).

96-26, which is on page 22 of Internal Revenue Bulletin , available at IRS.gov/pub/irs-irbs/irb96-08.pdf. This change provides the flow-through entity with information regarding the status of its indirect foreign partners, owners, or beneficiaries, so that it can satisfy any applicable reporting requirements. The entity paying the taxpayer (the person or business rendering the services) receives the W-9 form from the taxpayer. When reporting the payments made to the taxpayer at the end of the year, the organization uses the data on the W-9 form to create and issue Form 1099-MISC or other applicable tax forms. If you receive a Form W-9 with a FATCA exemption code and you know or have reason to know the person is a specified U.S. person, you may not rely on the Form W-9 to treat the person as exempt from FATCA reporting. However, you may still rely on an otherwise completed Form W-9 to treat a person as a specified U.S. person.

Using Form W-9

It’s a way of formally gathering personal information, having a standard method of transmitting information, and requiring the furnisher to certify that the information they are providing is correct. Form W-9 is then used to issue specific tax statements to non-employees that earned certain types of payment throughout the year. Again, keep your safety in mind when completing and sending a W-9. Before you even fill it out, verify that the request for your form is legitimate.

• The most common situation occurs when an independent contractor completes work for a company and receives payments.
• Advise foreign persons to use the appropriateForm W-8 or Form 8233, Exemption From Withholding on Compensation for Independent (and Certain Dependent) Personal Services of a Nonresident Alien Individual.
• Transferor must withhold a tax equal to 10% of the amount realized, unless an exception applies.
• You will still have to report your earnings to the IRS, and the companies that use your services will have to report those earnings, too.
• Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.
• Though a lot of the information these forms collect is similar, they represent different types of business relationships.

Securities and Exchange Commission as an investment adviser. A W-9 form is crucial to filing your taxes if you’re a contract worker, a freelancer or self-employed. The companies you work with do not have to withhold paycheck taxes for you, and the W-9 serves as an agreement that you are responsible for paying those taxes on your own. You send it to the employers who have requested it from you.

Form W-9 vs. W-4

You might want to fill out this box to keep a record of to whom you provided your tax identification number. If you’re not sure what type of business entity you should select, the IRS has provided a summary table for guidance as part of the Form W-9′s instructions. This is where fedex w9 you sign and date the form, indicating that you provided your accurate information. This is a legal document, so it’s important to read and follow all instructions carefully. The other boxes correspond to C corporation, S corporation, Partnership and Trust/estate businesses.

Businesses use W-9 forms to collect taxpayer identification numbers for nonemployees who work for them during the year. They can then use these TINs to help them fill out 1099 forms at the end of the year. With a model 1 or 2 intergovernmental agreement (IGA), reporting FFIs must identify U.S. accounts and report information about U.S. account holders.