2020 Form W-9 Online: Get it done easily
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What Information should contractors/payees complete on Form W-9 for 2020?
- 1. Contractor/Payee Details: Name, Business Name, Business type, Address
- 2. Contractor/Individual TIN (EIN/SSN)
- 3. Signing the Form
Now, It's simple to complete Form W-9 with TaxBandits. Enter information that is applicable to you. Your payer will be notified for the updates.
How to complete 2020 Form W-9 Online with TaxBandits?
Frequently Asked Questions
What Is Form W-9?
Form W-9 is used by any individuals/Entity to request a taxpayer identification number from a contractors /payees to file the 1099 tax returns to report for Payment made to any individuals, Real estate transactions, Mortgage interest paid, Acquisition or abandonment of secured property, Cancellation of debt, Contributions made to an IRA.
What is backup withholding?
- If you made any payments to the individuals, you must withhold under certain following conditions and pay 24% of such payments to the IRS. This is called “Backup withholding”.
- Payments that may be subject to backup withholding include interest, tax-exempt interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, payments made in settlement of payment card and third party network transactions, and certain payments from fishing boat operators
- Not furnishing TIN
- When IRS rejects the TIN
- IRS tells you that you are subject to backup withholding
What are the penalties if the contractors/payees fail to furnish correct TIN?
Penalty of $50 imposed on contractors/payees, if fail to provide their requester with the correct TIN, unless an acceptable reason is stated.
For more details, visit, irs.gov.