W9 Form Contractor – A W9 form is a method for you to give a person or any financial institution taxpayer Identification Number (TIN). This allows them to report data, such as income earned, IRA contributions, and your capital gains earnings for the IRS. In most cases the case, you TIN is the Social Security Number. But it could include your individual Taxpayer Identification Number (ITIN).
Do I Need To Complete A W9 Form Contractor ?
You will need to complete this tax form in case that you are asked to by an individual or a financial institution that has important information to report to the internal revenue service. You may be asked to write in a W9 form by a financial institution based in the US or by a foreign institution.
FACTA requires foreign institutions to report some types of information about US clients to the internal revenue service. This may be necessary supposing that you work for a foreign institution or if you have an account with a foreign bank.
Who Can Request A W9 Form?
A business enterprise in the US that is paying to you can request that you complete a W9 Form Contractor. This might be your employer, your real estate broker, or another individual or institution that has a financial relationship with you.
W9 Form Contractor can also be requested by financial institutions both in and outside the US. This form is specifically designed for US persons. The form for individuals that are not US persons is W8-BEN, while the form for entities is W8-BEN-E. If you have been asked to carry out the wrong form, you should request the right one. In case you have been asked to finalize a W9 form by a foreign financial institution, you should confirm that you meet withholding thresholds.
What Happens Supposing that I Do Not Complete W9 Form Contractor?
In the case that you are asked to finalize a W9 Form Contractor and fail to do so, you could be subject to backup withholding. Businesses and financial institutions in the United States are holding agents. That is why it’s important to complete, sign, and return your form in a timely manner. Whenever you do not return a form to a foreign financial institution, they could choose to close your account.
After you have provided the carried out W9 form to the entity or individual that requested it, you will be given a copy of the form that they sent to the internal revenue service. This can be Form 1098 or 1099.W9 Form Contractor