It often happens that information, which is provided by W-9 form, has to be updated. This fact arouses lots of questions from the document recipients. The most common is do I have to fill out a new W-9? The answer is Yes, definitely. You should always keep such info up to date and send the new form to the company you work with as an independent contractor. However, there are a few more things you have to take into consideration.
Why it is so important?
There are several situations when a person’s first or second name can be changed. In most cases it happens when you get married and take you spouse’s surname. An opposite situation may occur when people divorce. The third option is when you decide to alter it on your free will due to certain reasons.
A change in person’s name might be considered only as a private issue, but it effects the taxation process significantly. A mismatch in databases may lead to several problems, including tax refund delay. That’s why W-9 has to reflect the info correctly.
Reporting to SSA
In order to avoid any mismatch in the data, you should report to Social Security Administration whenever your first or last name is altered for any reason. When IRS receives the information about independent contractor, it’s being checked out for the match with SSA database. So, it’s crucial to contact Social Security Administration and report about all the changes.
Changing your business name
The fact of business name alteration also has to be reported to IRS. There are two ways to do that. The first one is to include the required info in your income tax return blank. The second method is to email IRS. The letter should include both new and former versions, as well as your TIN.