This form is used to check the status of an independent contractor who temporarily performs specific work for a company or any other business.
By filling it in, contractors confirm that they are exempt from paying taxes and provide the company with their TIN. This number will be needed by the business while completing 1099-MISC form. After the contractor has filled out the editable W-9 blank, company has to make sure that the necessary sections are filled. If the company has retained the form in its business records, then it does not need to send it to the IRS. Even if a small business has never dealt with such forms, they can quickly create a W-9 for themselves as an individual entrepreneur or business, if they are identified as S-Corp, LLC, partnerships, or other organizational structure. Copy filling is quick, easy and does not require any fees.
Contractor W-9 Forms
Hiring a contractor, no matter if it is an individual or a business, it is needed to get W-9 2019 from him/her. Contractors may include limited liability company, individual entrepreneur, partnership, corporation, trusts and small company. At the end of each year, a business is required to report to the IRS the total amount of payments it pays to each of its contractors, if it is more than $ 600.
Why the IRS
One of the main reasons why IRS needs editable W-9 from company that hires contractors is a TIN comparison. This makes it possible to verify that the information obtained in W-9 is the same as that available in the IRS. Since independent employees are not subject to tax deduction, this allows the IRS to track payments back to each taxpayer if it has not received income tax. Without a TIN, an independent worker can deliberately prevent incorrect information with the aim of tax evasion.
Form W-9 takes up one page and requires a small amount of information. Recipients of the form must provide their full name or business name, as well as the address and the corresponding TIN. In the last section, a signature is required to confirm that the filler is not subject to reserve withholding, that the TIN filed is correct and that the person is a US resident or citizen. If you have more questions, about can a company fill out W-9 form 2019, you can get our professional help. Moreover, we will give answers on any other question about this doc and help during the process of filling it out.