What Is the Purpose of IRS Form W-9?

Request for taxpayer identification number

IRS Form W-9 is a request for a taxpayer identification number. It is used by companies that need your taxpayer ID to inform the IRS how much money they've paid you or by charities that need to report your donations.

Requestors

Businesses that hire independent contractors typically ask the contractors to fill out a W-9 form. Nonprofit organizations might also send a W-9 to donors so the donors can claim a tax deduction for their donation.

Features

IRS Form W-9 includes space for your name or business name, address, business type, and your taxpayer identification number (usually your Social Security number) or federal employer identification number (EIN).

Requirements

You must sign the form to certify that the taxpayer ID number you entered is correct, that you are a U.S. citizen, and that you are not subject to backup withholding.

Penalties

Unless you have a good reason, you could be penalized $50 if you don't give your taxpayer ID number to a business that requests it. If you give inaccurate information about backup withholding, the penalty is $500.

Uses

The business or nonprofit does not send the completed Form W-9 to the IRS. Instead, the form is kept on file and used to prepare a 1099 to report income.

References

• IRS: Form W-9
• UCSD: IRS Form W-9 Request for Taxpayer Identification