Form W-9 is one of the most commonly used forms in a business-contractor relationship. Under federal law, businesses that pay a contractor over $600 must file Form 1099-MISC. This can only be done via W-9. So if you’re working as a contractor or as a freelancer, you must file a W-9 Form upon request of a business you’ve worked for.
Not Filing W-9 Form in 2020
Not filing a W-9 Form that is requested by an employer or by any other entity will bring you penalties. It is currently $50 for each instance you don’t file. Not only limited to that, but you may also be subjected to backup withholdings which is the case when the payor will withhold 28% of your earnings and forward it to the IRS.
Is W-9 Form Fre to File?
Keep in mind that acquiring a copy of the W-9 Form from the IRS website is completely free. You must avoid any website or platform that offers you a copy of it for a certain amount.
Once you get to the pdf file above, click the print logo at the right top of the screen. It is a 6 page Form so you must mail each page together when an entity requires you to. Also, as a side note, remember that you must fill out each box that is related to your Taxpayer Identification Number.
Not doing it so will make the form rejected by the IRS and you may be backup withholdings as we’ve explained above.