The IRS is a government organization in the US that is responsible for collecting revenues, employment and income tax and implementation of new laws on tax.
Form W-9 is the most common (and most popular) type of a form, filled by almost every employee. Form W-9 is filled up by individuals who have been requested for their identification number and certification from the companies that will pay them their income. The company or individuals (in other words the employer) that collect this form do not send it to the IRS. Rather, they use it and keep it with themselves in order to create their pay checks. For business owners, their clients can also ask them to provide a W-9 form in order to keep a track of the payments they make to them.
Completing Form W-9
On the form you will be asked to fill in your name as mentioned in your federal income tax return. The next thing will be to write down the company name or business you own, if any. The third part will be to classify your tax from the provided options by choosing the most appropriate one.
Taxpayer identification number
In the next section you will need to jot down your address and write down either your Social Security Number or (if you are a non-resident) the TIN, Taxpayer Identification Number.
Business owner or employers will have to fill in the next blank with their respective identification number of the employer. Date can be filled at the bottom and then signed.
Backup Withholding is when the IRS requests the individual or company that has asked for you W-9 form to keep a certain amount to withhold from your payment in order to pay for your federal income taxes. The IRS always notifies if your account has been considered subject to Backup Withholding. You will be required to inform the individual or company to withhold a part of your income as a part of federal income taxes.
Submitting Form W-9
The W-9 form needs to be submitted to one’s company. You may hand it over to the supervisor or the person looking after the HR department. The fully-filled forms are kept with your employer, stored in your personal file and referred during pay.
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