Request Form W-9 Online

Form W-9 , Request for Taxpayer Identification Number and Certification 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.

The IRS released the new version of Form W-9, introducing a new Line 3b, The original Line 3 has now been split into separate sections as Line 3a and 3b, respectively.

Line 3a requires business entities to indicate their federal tax classification, while Line 3b needs to be checked if the business has foreign partners, owners, or beneficiaries, which applies to flow-through entities.

Line 3b indicates if a flow-through entity has any direct or indirect foreign partners, owners, or beneficiaries when providing their W-9 to another flow-through entity. Flow-through entities are businesses where income directly flows to shareholders, who report their individual share of income on their personal tax returns instead of the total income in the business.

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

For detailed information about how to fill out form W-9 for 2024, visit https://www.taxbandits.com/form-w9-instructions/.

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 a Taxpayer Identification Number, and Certification from the respective payees.

By obtaining a fillable 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.

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

• Step 1: Add vendor details either manually or import from QuickBooks, Xero, Zoho Books & FreshBooks
• 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

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

Here are the payment types that are subject to backup withholding

• 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.