We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
W-9: A Comprehensive Guide to Its Legal Definition and Use
Definition & Meaning
A Form W-9 is an official document from the U.S. Internal Revenue Service (IRS) used primarily to gather information from independent contractors. This form serves two main purposes:
It allows third parties to report payments made to contractors to the IRS.
It helps contractors avoid backup withholding on their earnings.
The W-9 form requires essential details such as the contractor's name, address, and either their Social Security number or taxpayer identification number. Only U.S. citizens and resident aliens can use this form.
Table of content
Legal Use & context
The W-9 form is commonly used in various legal and financial contexts, particularly in the realm of taxation and employment. It is essential for:
Independent contractors who need to report their income.
Businesses that must file information returns with the IRS regarding payments made to contractors.
Users can often manage the completion of this form themselves using templates provided by services like US Legal Forms, which are drafted by qualified attorneys.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Here are two examples of when a W-9 form might be used:
A freelance graphic designer provides a W-9 to a company that hires them for a project, allowing the company to report their payments to the IRS.
A consultant submits a W-9 to a client to ensure they are not subject to backup withholding on their earnings. (hypothetical example)
Comparison with related terms
Term
Definition
Key Differences
W-9
Form used to provide taxpayer information to avoid backup withholding.
Specifically for independent contractors and reporting payments.
W-2
Form used by employers to report wages paid to employees.
Used for employees, not independent contractors.
1099-MISC
Form used to report miscellaneous income paid to non-employees.
Reports income but does not collect taxpayer information.
Common misunderstandings
What to do if this term applies to you
If you are an independent contractor, follow these steps:
Complete the W-9 form accurately with your information.
Provide the completed form to the businesses or clients that will pay you.
Keep a copy for your records.
You can find ready-to-use W-9 templates on US Legal Forms, which can simplify the process. If you have complex tax situations, consider consulting a tax professional.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.