Q:

What is the purpose of a W-9 form?

A:

Quick Answer

The W-9 form is a sheet generated by the Internal Revenue Service to obtain a legal and accurate tax identification number from an individual or corporation required to file an information return to the IRS. The IRS requires citizens and businesses to file certain financial information, which is used to determine the amount of taxes owed and to gain other information, such as income accrued and real estate transactions.

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What is the purpose of a W-9 form?
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Full Answer

For individual citizens, the W-9 form is used to verify the tax identification number issued by the federal government. Businesses are also issued taxpayer identification numbers, which are called federal employer identification numbers. Corporate tax numbers serve the same purpose as individual tax numbers, which helps to correctly identify the type of taxpayer and ensure that citizens and companies are taxed according to their income. W-9 forms are commonly given to new employees by their employers at the time of hire. Companies must report the incomes of all employees regardless of position within the company and socioeconomic status. W-9 forms are also used to track financial transactions that take place between businesses or between businesses and their clients. These transactions may include miscellaneous payments or financial gifts from donors as well as grants or other money received.

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Related Questions

  • Q:

    How do you fill out a W-9 form?

    A:

    A W-9 form is completed by filling in a name, the specific business entity type, exemptions, physical address, a tax identification number, and a business or disregarded entity name, according to Investopedia. Individuals who need to fill out a W-9 form typically include independent contractors and freelancers.

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    Who should file a form IT-214 with the IRS?

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    Form IT-214 is a New York state tax form and should not be filed with the Internal Revenue Service. The form should be filed with the New York Department of Taxation and Finance by homeowners or renters claiming a real property tax credit.

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    Where should you mail IRS Form W-4V upon completion?

    A:

    Taxpayers completing Form W-4V do not return their forms to the Internal Revenue Service, according to the IRS website. Instead, taxpayers submit the forms to the payers of certain benefits from which taxpayers wish to voluntarily withhold federal income tax.

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  • Q:

    Where can you find a printable IRS W-9 form in PDF?

    A:

    A printable PDF file of the W-9 form is available from the Internal Revenue Service website. As of 2015, taxpayers can access the form directly from the website's homepage under the Forms & Pubs banner on the left. The link downloads a fillable PDF version of the form.

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