Hiring an individual contractor for performing a certain kind of a task the charge of which exceeds $600, you are obliged to report about it to the IRS through a W-9 form 2020 voluntary. Every freelance is to fill out this editable IRS legal instrument, to provide their data, the ID or TIN, as well as several other details. Once the document is completed, you are to preserve it, use the information towards preparing the 1099-MISC paper, and submit to the Internal Revenue Service at the end of the current tax year.

Where You Can Get a W-9 form

If you are a freelancer (teen as well), the business or association which hired you is to provide you with a latest free fillable legal instrument to fulfill. On the other hand, if you are the business side and are obliged to issue it to your contractor, just download blank to print from the official website of the IRS. Additionally, in these modern times of technologies, it’s recommended to give your preference for electronic W-9 submission. The W-9 can be signed online, as well. This file can be sent to the freelancer’s email address.

How to Complete It

Filing the legal instrument is quite a straightforward task that requires neither much time nor special skills. All that you need is the utmost attention and accuracy. Here is a detailed list of the data you need to provide:

Method of Electronic Signature W-9 Form

Persons requesting charge reporting can install a system of submitting legal instruments electronically, to payees and their agents. Requestor – any person or organization who is required to collect profit information. Payee – any person who is required to provide a TIN to the requester. In general, the electronic system should:

Which facts you should pay special attention to:

Stage Requirements Notation
Filling/Completion The document with electronic signature must contain a disclaimer of liability for the provision of false information. A statement of acceptance of this responsibility should be identical to the statement indicated in the paper format of W-9.
Final procedure When submitting the form, the provision of the electronic signature of the payee specified in W-9. The signature must certify and confirm the provision of the form.

For legal instruments that do not claim a signature, the online system should not include an electronic signature or a statement of acceptance of responsibility for providing false information.

By itself, it is a standard tax document assigned by the government. There is no difference between electronic or paper version of this paper. There doesn’t seem to be any problematic issues related to it unless you face one of the below-mentioned most recent situations:

  • Give your Social Security number only when you are sure you know the company/person requesting to fill it out;
  • Be cautious to send the paper secured and encrypted;
  • Be aware of what tax documents your employer will supply you with;
  • Pay attention whether you are given a W9 or W4 model to complete (if the first one is for freelance workers, the latter is for employees).

Backup Withholding

W-9 forms to print also include a section where you need to state whether you are subject to backup withholding or not. It is worth roughly twenty-eight percentage on all payments given to you and depends on some conditions. These involve a disagreement between the IRS records and the SSN or your name mentioned and having significant debts of taxes. Unless they are reimbursed, you won’t be able to escape backup withholding.