What is form W-9 backup withholding?

Taxpayer Identification Number is the most important information on W-9 form. It is used to issue the appropriate 1099 tax document that reports payments being made to you during the year. Your TIN should match the information in IRS database.

Backup withholding

Under certain circumstances the payer will be obliged to withhold a 24% tax from all the future payments to you. It is called backup withholding. In most cases this status will apply to you if you’ve failed to provide a correct TIN on W-9.

If you want to complete the blank fast and without mistakes, you can use our online filling tool. It allows you to enter all the data digitally and sign the paper with electronic signature.

Individuals and companies that are subject to backup withholding should cross out line 2 on Part II before certifying the document.

What are the penalties on W-9

There are a few IRS penalties that might be imposed on you.

Penalty Why it’s applied?
$50 fee Your TIN is incorrect or missing
$500 fine You’ve made a false statement
Criminal/civil penalty You’ve willfully falsified certain information