Tax forms usually are quite confusing and complicated because of different requirements regarding the purpose of each document and the filing procedure. Even the most common and direct may be a real disaster. The great example is a W-9 Form. This is a Request for Taxpayer Identification Number and Certification. The blank has only a few fields to be completed with precise and clear details. However, all the questions concerned the template preparation are about the organizing and submitting it.
The most popular question regarding the document is, whether an individual needs to cancel a sample in case they stopped working for a company they filed the request to.
This document is used to provide an individual’s taxpayer identification number to the hirer. It has to be completed by a U.S. citizen or resident alien, domestic trusts and estates. It may be prepared also by a partnership, corporation, company and association created under the law of the United States.
The entrepreneur has to provide employers with this request in order to collect their personal data and taxpayer identification number. It is required to retain this information and forward to the Internal Revenue Service at the end of fiscal year.
A person may receive the W-9 form due to different reasons. Usually it is provided to independent contractors and freelancers. The superior paying you a salary has to report to the Internal Revenue Service whether the payment meets certain criteria. In this case it is necessary to attach a 1099 Form.
Before you are hired, you have to define and outline the conditions and obligations of the deal.
Of course, there may appear certain moments preventing the execution of the planned work.
In case you decided to refuse performing the services and thus didn’t get paid, don’t worry about the need to cancel the paper:
If you're worried that the IRS might have a record about you intending to work for this company and that this may trigger a tax consequence, that's not the case.
It is important to have each contractor fill out the W-9 blank right after they have been hired. The worker has to fill out the blank and return it to the employer who may attach 1099 MISC and W-2 (as needed) and submit these documents to the IRS.
Why is it so important to file the IRS w9 form instantly? Actually, there are no real reasons. The only one is the need to organize the entire process of the documents submitting. It is much more convenient to have the employee’s basic data as early as it is possible, not to collect it right before the end of the fiscal year.
This way helps to avoid hassles and misunderstanding. However, this rule has nothing to the W-9 filing. The paper will be kept by your hirer without any changes. Remember that noone has a right, and actually a reason to submit the blank to the Internal Revenue Service and withhold any taxes from you.