Form W-9 looks short, but it still gets rejected all the time. Here is what each part asks for, in the order you meet it, and where people go wrong.
Who asks for a W-9, and where it goes
A business that pays you, such as a client who hires you as an independent contractor, asks for a W-9 so it has your name and taxpayer ID number to report what it paid you. You give the completed form to the person or company that asked. You don't send it to the IRS. The form says so at the top.
Lines 1 and 2: your name
Line 1 is your name as shown on your income tax return. If you are a sole proprietor, or you own a single-member LLC that the IRS treats as part of you, put your own name here, not the business name. Line 2 is for a business name, trade name or disregarded entity name, and only if it is different from line 1.
Line 3a: federal tax classification
Check one box. The choices are individual or sole proprietor, C corporation, S corporation, partnership, trust or estate, LLC, and Other. If you check LLC, you also enter a tax classification code: C, S or P. The form adds one exception: a disregarded entity should check the box for its owner's classification instead of LLC.
Line 3b is for a narrow case. It applies only if you checked partnership, trust or estate (or LLC with code P) and you are giving the form to a partnership, trust or estate in which you have an ownership interest. In that case, check the box if you have any foreign partners, owners or beneficiaries.
Line 4: exemptions
The exempt payee code and the FATCA reporting code apply only to certain entities, not individuals. Most individuals and sole proprietors leave both blank.
Lines 5 to 7: address and account numbers
Lines 5 and 6 are your street address, city, state and ZIP code. Line 7, for account numbers, is optional and is there for the requester's use. The requester's name and address box is optional too.
Part I: your taxpayer identification number
Enter either your Social Security number or your Employer Identification Number, depending on who you are. Individuals generally use their Social Security number. A business with an EIN uses that. Sole proprietors can generally use either, and the form's instructions explain which fits your situation. The number should match the name on line 1.
Part II: sign and date
Signing certifies that the number is correct and that you are not subject to backup withholding, or that you are exempt from it. An unsigned form usually has to be redone, so sign and date it.
Why the details matter: backup withholding
If a payer doesn't have a correct taxpayer ID number for you, it may be required to withhold federal tax from your payments at a flat rate, which is 24% as of this writing. That money isn't lost, because you claim it as a credit when you file, but it is cash you don't see until then.
Common mistakes
- Putting the business name on line 1 when you are a sole proprietor, instead of your own name.
- Checking LLC for a disregarded entity, when the form wants the owner's classification.
- Entering a number that doesn't match the name on line 1.
- Forgetting to sign and date Part II.
- Mailing the form to the IRS. It goes to whoever asked for it.
Fill it in without uploading it
You can open Form W-9 in DocZap and type straight into its 27 fillable fields. It runs in your browser, so nothing you enter is sent to a server. Add your signature with the Sign tool, then download the finished PDF and send it to the person who asked.
This is general information, not tax advice. Check the IRS instructions for Form W-9 for your situation, and use the current version.
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