The IRS W-9 form is also a mandatory step in attestation. A properly completed document encourages employers to receive key information as fully as possible from all their freelancers to provide ready reporting to the IRS.
The employer must do a return of information about the income received by freelancers or independent contractors, in those cases when the monetary benefit is equal to 600 or more dollars for the last 12 months.
In order to enter the reporting data into the 1099-MISC document correctly, employers use new information that principal staff indicated in the W-9, in particular:
- Taxpayer Identification Number (TIN);
- Full name of the employing organization.
Then one copy of the 1099-MISC form will be sent to the IRS, and another employer must send to the staff no later than January 31 (the end of the tax year). In addition, there are a number of other reasons why gov organizations may require freelancers to fill out the W-9 blank:
- All types of real estate transactions;
- Increase or decrease in the interest rate;
- Entry into the inheritance or renunciation of inherited property;
- Cancellation of public debts;
- Inclusion of updated information in an individual pension agreement (IRA).
If you work as a freelancer in a group and open a joint settlement account, you need to take into account that each participant of such a group must fill out the W-9 form individually. Before you start to fill out the document, be sure to read how to do it correctly. If you make a mistake, you must take a new form and fill it correctly, no corrections are allowed.