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

Form W-9 is used to provide your correct Taxpayer Identification Number (TIN) to the person or entity that is required to file an information return with the Internal Revenue Service (IRS). This form is necessary for reporting various types of income and transactions to the IRS.

Why is Form W-9 Required?

Form W-9 is required in the following situations:

1. Income paid to you: If you receive income from a person or entity, they may need your TIN to report the income to the IRS.
2. Real estate transactions: If you are involved in a real estate transaction, such as buying or selling property, the other party may need your TIN for reporting purposes.
3. Mortgage interest you paid: If you paid mortgage interest to a financial institution, they may require your TIN to report the interest to the IRS.
4. Acquisition or abandonment of secured property: If you acquired or abandoned secured property, the person or entity involved may need your TIN to report the transaction to the IRS.
5. Cancellation of debt: If a debt you owed was canceled, the creditor may need your TIN to report the canceled debt to the IRS.
6. Contributions to an IRA: If you made contributions to an Individual Retirement Account (IRA), the financial institution managing the account may need your TIN for reporting purposes.

Recent Developments

It is important to note that the backup withholding rate for Form W-9 has changed. Public Law 115-97 has reduced the backup withholding rate from 28% to 24%. This change may affect the amount of tax withheld from certain payments.

How to Complete Form W-9

Form W-9 is a simple one-page form that requires the following information:

1. Name: Provide your full legal name as it appears on your tax return.
2. Business name (if applicable): If you are providing your TIN on behalf of a business, enter the business name.
3. TIN: Enter your Taxpayer Identification Number. This can be your Social Security Number (SSN) or Employer Identification Number (EIN).
4. Address: Provide your current mailing address.
5. Exemptions: If you are exempt from backup withholding, indicate the reason for the exemption.
6. Certification: Sign and date the form to certify that the information provided is correct.

Where to Submit Form W-9

Once you have completed Form W-9, you should submit it to the person or entity that requested your TIN. They will use the information on the form to file the necessary information returns with the IRS.

Additional Resources

For more information about Form W-9 and related topics, you may find the following resources useful:

• Form W-9
• Instructions for Form W-9
• Backup Withholding
• Taxpayer Identification Numbers (TIN)

Please note that the information provided here is for general guidance only and should not be considered as legal or tax advice. It is always recommended to consult with a qualified tax professional for specific questions or concerns regarding your tax obligations.