Purpose of Form W-9

W-9 form is primarily used by businesses to request a U.S. person's Taxpayer Identification Number (TIN), which includes Social Security Numbers (SSNs) or Employer Identification Numbers (EINs). This form is crucial for correctly filing Form 1099-NEC (for non-employee compensation) or, in some cases, Form 1099-MISC for independent contractors and freelance talents.

When To Request a W-9 Form

Send the letter template to get the form in the following cases:

1. To Hire independent contractors or freelancers. Before making payment for services provided by non-employees.
2. For opening a new business account. Financial institutions often require a W-9 for banking or investment accounts.
3. For real estate transactions. Certain dealings involve income reporting to the IRS.
4. When you're disbursing interest to individuals, a W-9 is needed to report the interest paid over the tax year.
5. Before issuing dividends to shareholders.
6. If forgiving a debt that would be income to the debtor, a W-9 is required for reporting purposes.
7. Whenever you're obligated to file a 1099 form for reporting non-employee compensation, rent, royalties, or other payments.

Note:

Requesting a W-9 upfront can save time and ensure compliance with IRS reporting requirements. It's crucial in accurately reporting taxable transactions and avoiding penalties for missing or incorrect information.

How To Request a W-9 Form via Email

If you are logged in to your PDFLiner account, requesting a W-9 from a vendor or contractor will only take you 4 clicks and 2 pastes.

Step 1: Click the button

Hit the “Request a W-9 form” button on this page to open a “Request to fill” pop-up.

Step 2: Enter the recipient’s email address

Your first paste would be to enter your email address into a “People” field.

Step 3: Add the recipient’s name to a letter template

We prepared a letter template for you, so all you would need to do is replace a placeholder [Recipient's Name] with the actual name and check if the template fits your needs.

Step 4: Hit the “Send” button

To send the email with your request, click the button at the end of the form and receive a confirmation message.

Key Sections of W9

1. Legal and Business Name

Legal name as it appears on your Social Security card or official documents and business name if it’s different.

2. Tax Classification 

The form should Indicate whether the taxpayer is filing as an individual/sole proprietor, partnership, C Corporation, S Corporation, Trust, or Estate.

3. Address

Taxpayer’s mailing address for any tax paperwork.

4. Taxpayer ID Number

Freelancers or sole proprietors will use their SSNs, while businesses might use their EINs.

Note:

Misclassifying an employee as an independent contractor without a valid reason can result in liability for that worker's employment taxes.