Form W-9 Instructions: Request TINs and stay IRS Compliant

Form W-9, Request for Taxpayer Identification Number (TIN) and Certification, is a U.S. Internal Revenue Service (IRS) tax form that businesses use to obtain information regarding the taxpayer identification numbers of their vendors, contractors, freelancers, or any other payees. Understanding what a w-9 form is, how to fill it out correctly, and when it is required can help ensure accurate tax reporting and IRS compliance.

If you are an independent contractor filling a w9 form is the official California income tax return for S corporations. If your business is taxed as an S corporation in California, you must file Form 100S each year with the or a company requesting taxpayer identification numbers, then we have covered all your needs on W-9 form 2025.

What's new in Form W-9?

• The IRS created a new exempt recipient category for certain businesses that deal with digital assets.
• A digital asset broker (such as some cryptocurrency exchanges or platforms) may not need to be reported in the same way as regular customers.
• To make this easier, Part II (Certification) of Form W-9 now includes a new checkbox.
• By checking this box, one broker can certify to another broker that it is a U.S. digital asset broker and qualifies as an exempt recipient under IRS regulations.
• This helps brokers determine whether they need to issue information returns (such as Form 1099-DA) for digital asset transactions.

What is a W-9 Form?

An individual or entity (the Form W-9 requester ) that is required to file an information return with the IRS provides Form W-9 to the recipient to obtain the recipient's correct Taxpayer Identification Number (TIN). The requester uses this information to accurately report payments made to the recipient or any other amount required to be reported on an IRS information return

Who Needs to Complete Form W-9?

A business or individual will typically ask recipient to complete a W 9 if recipient is:

• An independent contractor or freelancer being paid for services
• A vendor or supplier receiving payments from a business
• Receiving interest, dividends, or other reportable income
• A landlord receiving rental income through a property management company
• An LLC, partnership, or sole proprietor entering into a business relationship involving reportable payments

If you're a regular employee receiving a W-2 , you generally won't need to complete a W9 for your employer.

What is the purpose of the W-9 form?

Form W-9 is used by businesses and other organizations to obtain a recipient correct Taxpayer Identification Number (TIN), which may be a Social Security Number (SSN) or an Employer Identification Number (EIN). The information obtained from this form assists payers in reporting payments made to recipient to the Internal Revenue Service (IRS).

Information obtained from W 9 is typically used to file several types of information returns, such as:

• Form 1099-INT (interest earned or paid).

• Form 1099-DIV (dividends, including those from stocks or mutual funds).

• Form 1099-DA (digital assets).

• Form 1099-MISC (various types of income, prizes, awards, or gross proceeds).

• Form 1099-NEC (nonemployee compensation).

• Form 1099-B (stock or mutual fund sales and certain other transactions by brokers).

• Form 1099-S (proceeds from real estate transactions).

• Form 1099-K (merchant card and third-party network transactions).

• Form 1098 (home mortgage interest), 1098-E (student loan interest), and 1098-T (tuition).

• Form 1099-C (canceled debt).

• Form 1099-A (acquisition or abandonment of secured property).

Signing the form W9, a payee agrees that the information they provided about their TIN is accurate and his tax status is valid

What is the purpose of the W-9 form?

Backup withholding is a federal tax withholding requirement where the IRS requires the payer to withhold 24%of certain payments and send it directly to the IRS instead of instead of full amount to the recipient.

Backup withholding may apply to payments such as:

• Interest income

• Dividends

• Tax-exempt interest

• Nonemployee compensation

• Rents and royalties

• Broker and barter exchange transactions

• Payment card and third-party network transactions

• Certain payments from fishing boat operators

How to Complete Form W-9: Step-by-Step

Step-by-step instructions explains what recipients will do to fill out W-9 form

Line 1: Name of the Entity or individual.

Enter the name that matches the Taxpayer Identification Number (TIN) provided on Form W-9. This name must be the same as the name shown on your federal tax return.

• Individuals: Enter the name shown on your tax return. If you have changed your last name without informing the Social Security Administration (SSA) of the name change, enter your first name, the last name as shown on your social security card, and your new last name.

• Sole Proprietors: Enter your individual name as shown on your Form 1040 on Line 1. Enter your business, trade, or “doing business as” (DBA) name on Line 2.

• Partnership, C corporation, S corporation, or LLC, other than a disregarded entity: Enter the entity’s name as shown on the entity’s tax return on Line 1 and any business, trade, or DBA name on Line 2.

• Other entities: Enter your name as shown on required U.S. federal tax documents on Line 1. This name should match the name shown on the charter or other legal document creating the entity. Enter any business, trade, or DBA name on Line 2.

• Disregarded entity: Enter the owner’s name on Line 1. The name of the owner entered on Line 1 should never be a disregarded entity. The name on Line 1 should be the name shown on the income tax return on which the income should be reported.

Line 2: Business Name

Enter the business name, trade name, DBA name, or disregarded entity name, enter name on this line (if different).

Line 3a Federal Tax Classification

Select the box that matches the federal tax classification of the individual or entity listed on Line 1. Only one box should be checked.

Line 3b: Foreign Partners, Owners, or Beneficiaries

Check this box if you are a partnership (including an LLC clas s ified as a partnership for U.S. federal tax purposes), trust, or esta t e that has any foreign partners, owners, or beneficiaries, and you are providing this form to a partnership, trust, or estate, in which you have an ownership interest.

You must check the box on line 3b

• if you receive a Form W-8 (or documentary evidence) from any partner, owner, or beneficiary establishing foreign status or

• if you receive a Form W-9 from any partner, owner, or beneficiary, check the box on line 3b.

Line 4: Exemptions

If you're exempt from backup withholding or FATCA reporting, enter the applicable code(s) on line 4. Most individuals and sole proprietors leave this blank — exemptions generally apply to corporations, tax-exempt organizations, government entities, and financial institutions.

Exempt payee code:

FATCA exemption codes:

Most taxpayers with U.S.-based accounts leave this blank. FATCA codes generally apply to specific exempt entities or accounts held outside the U.S. by foreign financial institutions.

Line 5: Address

Enter your address (number, street, and apartment or suite number). This is where the requester of this Form W-9 will mail your information returns.

Line 6: City, state, and ZIP Code

Enter your city, state, and ZIP code.

Line 7: Account numbers

This optional field is used to provide account number(s) associated with the account for which you are submitting Form W-9.

Part I: Taxpayer Identification Number (TIN)

Enter your TIN in the appropriate box. If you are a resident alien and you do not have, and are not eligible to get, an SSN, your TIN is your IRS ITIN. Enter it in the entry space for the social security number

• If you are a sole proprietor and you have an EIN, you may enter your SSN or EIN.

• If you are a single-member LLC that is disregarded as an entity separate from its owner, enter the owner’s SSN (or EIN, if the owner has one).

• If the LLC is classified as a corporation or partnership, enter the entity’s EIN

Part II: Certification

By signing and dating Form W-9, you certify that:

• Your TIN is correct (or you're waiting for one to be issued).
• You're not subject to backup withholding, unless the IRS has notified you otherwise.
• You're a U.S. citizen, resident alien, or other U.S. person.
• Any FATCA exemption code you entered is accurate.
• If you are a U.S. digital asset broker (such as certain cryptocurrency exchanges or digital asset trading platforms), you certify that you qualify for an exemption from certain information reporting requirements.

This certification lets the requester confirm your information is valid for reporting purposes. In most cases — such as submitting a w 9 to a client for 1099 purposes — you should sign and date the form before sending it.

W-9 vs. 1099

These two forms serve different purposes and go to different places:

Common W-9 mistakes to Avoid

Frequently Asked Questions (FAQs)

1. Who needs a W-9?

Recipient may be asked to complete a Form W-9 if you are an independent contractor, freelancer, consultant, vendor, sole proprietor, LLC, partnership, or other payee receiving reportable payments from a business or organization.

2. Is form W-9 filed with IRS?

No. Form W-9 is generally not filed with the IRS. Instead, it is completed by the payee and provided directly to the requester, who retains it for recordkeeping and information return reporting purposes.

3. What is the difference between W-9 and W-8?

Form W-9 is used by U.S. persons, including U.S. citizens, resident aliens, and U.S. entities. Form W-8 is used by foreign individuals and entities to certify their foreign status and, when applicable, claim tax treaty benefits.

4. What is Backup Withholding?

Backup withholding is a 24% federal tax withholding that may apply if you do not provide a correct TIN on Form W-9 or are subject to IRS withholding requirements.

Learn more about backup withholding.

5. What are the penalties for not filing Form W-9?

• Failure to furnish TIN: If you fail to furnish your correct TIN to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect.
• Civil penalty for false information with respect to withholding: If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty.
• Criminal penalty for falsifying information: Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment.
• Misuse of TINs: If the requester discloses or uses TINs in violation of federal law, the requester may be subject to civil and criminal penalties.

6. What is FATCA reporting?

The Foreign Account Tax Compliance Act (FATCA) requires a participating foreign financial institution to report all U.S. account holders that are specified U.S. persons. Certain payees are exempt from FATCA reporting.