The History of IRS Form W-9
The Internal Revenue Service Form W-9 represents a common tax information filing required of freelance workers, vendors to a business, and contractors who provide services to others likely to exceed $600 a project. This form allows the hiring party to accurately report whom it has paid in a tax year and how much.
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Genesis to 1943
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The W-9 Form is a bureaucratic result of the IRS implementing tax withholding authority provided in the Current Tax Act of 1943. This congressional set of statutes was marketed in a series of political statements convincing the public that tax payment was a patriotic duty, so withholding ensured everyone participated.
Expansion
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The IRS and political policy work in the late 1970s and 1980s expanded withholding to independent contractors as a catchall for tracking other payments made outside of payroll. IRS personnel were instructed by internal policy to use cross-referencing systems to find unreported, taxable income in taxpayers.
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1983 and Subsequent Updates
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According to the Los Angeles Times, the IRS introduced the W-9 in 1983 as part of further withholding reporting expansion. Multiple variations were approved since that time. For example, the IRS updated the W-9 in October 2007 providing detailed options for limited liability companies to provide their status. The form was also changed to report citizenship status of the filer.
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References
- The Cato Journal; Evolution of Federal Income Tax Withholding; -- The Machinery of Institutional Change; Charlotte Twight
- Williams College: IRS Form W-9
- MBAF; As the IRS Gives Form W-9 an Update, Banks Should Review; Manuel Pravia; January 2008
- "The Los Angeles Times"; Taxpayers IDs to Be Tracked by New Form; October 1983.
Resources
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