Request Form W-9 Online

What is Form W-9?

Form W-9 is an IRS form used by businesses to obtain Name, Address, and Taxpayer Identification Number (TIN) from contractors or vendors.

The information obtained through W-9 forms will be used to e-file the applicable 1099 forms for reporting payments made to the respective vendors.

Check out https://www.taxbandits.com/what-is-form-w9/ to learn more about
Form W-9.

What information will the vendors provide on their Form W-9 Online?

Here are the details that the vendors will provide on their W-9 Forms:

• Name, Business, Federal Tax Classification
• Taxpayer Identification Number (TIN) - Eg: SSN, EIN
• Subjection to Backup Withholding
• Exemption codes for FATCA Reporting, if any

When should you request W-9 Online?

If you are a business that is required to make payments (generally, more than $600) to any individual or entities regarding any services rendered, such as independent contractors, freelancers, or consultants, you must request Form W-9 from the respective payees.

By obtaining a W-9 form, you can ensure that you have the necessary information to accurately file 1099 forms with the IRS at the end of the year.

How to Complete Form W-9 Online with TaxBandits?

Follow these simple steps to request Form W-9 from your vendor:

• Step 1: Add vendor details either manually or import from Xero
• Step 2: Request the vendor via email to complete Form W-9 Online
• Step 3: The vendor will complete and e-sign their W-9, and you’ll be notified
• Step 4: TaxBandits will validate the TINs obtained through W-9s
• Step 5: E-file 1099 forms for your vendors using the W-9 information and distribute copies

What is backup withholding?

The payments you make to the vendors will be subject to a backup withholding of 24% ifThe payments you make to the vendors will be subject to a backup withholding of 24% if,

• The vendor fails to furnish TIN
• The vendor fails to certify the TIN
• The IRS indicates that the vendor has furnished an incorrect TIN
• The IRS informs that the vendor is subject to backup withholding since they didn’t report all the interest and dividends on their tax return
• The vendor fails to certify that they aren’t subjected to backup withholding under the above 4 conditions

What type of payments are subject to backup withholding?

Here are the payment types that are subject to backup withholding

What are the penalties if the vendors fail to furnish the
correct TIN?

• TIN Mismatch: A penalty of $50 will be imposed on contractors or vendors if they fail to provide furnish the correct TIN unless an acceptable reason is stated.
• Civil Penalty: If a vendor provides false information with respect to withholding, they will be subject to a $500 penalty.

For more details, visit irs.gov.

More FAQ on Form W-9