W-9 Form
Candlefocus EditorThe most common information requested on a W-9 form are the taxpayer's name, address, and Social Security Number or other tax identification number. Additionally, the taxpayer's signature, date, and a detailed list of their income sources is also collected. These data points are extremely important for accurate federal and state taxation, and are collected, shared, and stored important privacy and security regulations.
By submitting a W-9 from to a client, taxpayers can avoid having taxes withheld from their earnings. If a W-9 is not provided as requested, the client must withhold taxes from any income paid to the taxpayer at a rate of 24%. Failing to submit or provide a W-9 may also result in additional fees or penalties from the IRS. Therefore, it is important to understand what a W-9 form is, and when and how to submit it to clients.
The W-9 Form is an essential tool for accurately accounting for income and ensuring taxpayers have an accurate picture of their earnings when filing taxes. The information provided on the form allows the IRS to ensure taxpayers pay the appropriate amount of taxes, and any failure to submit it accurately and on time may result in additional taxes, penalties, and fines.