What is Form W-9 and how do I use it?

Form W-9 is used to provide a correct TIN to payers (or brokers) required to file information returns with IRS. Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example:

What is an ITIN W-9?

Individual Taxpayer Identification Number (ITIN) Form W-9 (or an acceptable substitute) is used by persons required to file information returns with the IRS to get the payee’s (or other person’s) correct name and TIN. For individuals, the TIN is generally a social security number (SSN).

When to fill out a W-9 for 2018?

Fill Out W-9 for 2018. A W-9 form is used for tax filing purposes. This form is used to get information from a person who you may be hiring or an independent contractor you are planning on using.

What if I receive a Form W-9 with a FATCA exemption code?

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

When should the payer request W-9 forms from New vendors?

To have the supplier information when the payer business needs it, it should request W-9 forms from new vendors and collect them as part of the supplier onboarding process when the first order occurs, before they remit the first payment. Vendors (payees) should submit updates to the payer when Form W-9 information changes.

How many times do you have to provide a W-9?

A W-9 only has to be provided once. The ITO will provide the forms after receiving a completed Business Visitor Questionnaire. Most tax treaties have a saving clause. A saving clause preserves or “saves” the right of each country to tax its own residents as if no tax treaty existed.

Who is exempt from backup withholding on W-9?

Certain payees are exempt from backup withholding and should “enter an exempt payee code on Form W-9”. Payee vendors are subject to backup withholding at a 24% (or current) rate if they don’t provide their taxpayer identification number on a Form W-9 or the TIN provided is incorrect.

What is backup withholding on a W-9?

The IRS sometimes requires the person or entity requesting the W-9 to withhold a percentage of your earnings and send them to the IRS to pay your federal income taxes. This is known as “backup withholding.”

Can a foreign person file a W-9 for a trust?

not the trust; and • In the case of a U.S. trust (other than a grantor trust), the U.S. trust (other than a grantor trust) and not the beneficiaries of the trust. Foreign person. If you are a foreign person or the U.S. branch of a foreign bank that has elected to be treated as a U.S. person, do not use Form W-9.