IRS Form W-9 incorrect filing penalties

Self-employed workers who offer their services to US-based companies and receive US-sourced income are obliged by the law to fill in the IRS-issued tax form.

But what if a contractor refuses to file a W9 form to print or deliberately submits false data?

Who has to file W-9 – advice for US citizens and and foreigners

If you are an independent contractor (individual contributor, freelancer, self-employed worker) and your income received from a company you work with exceeds $600 per year, you have to fill out and submit W-9 once every year. If you are registered as a sole proprietor or employed by an LLC, you also have to present this tax document. If you have another questions about this blank, you may find the answers here.

Foreigners and international contractors income taxation

All the foreign independent contractors or non-US citizens who are employed by an American company and perform their services in the USA have the legal obligations to provide their taxpayer information and pay taxes, as the money they earn is considered to be US-sourced income. And if the income received from one company exceeds $600, it is the subject to tax. Foreigners can download the editable W-9 form in Word or PDF file, fill it out and send via email.

Penalties for failing to provide taxpayer info

A subcontractor who fails to send his/her correct taxpayer details can face the following criminal and/or civil penalties:

Civil charge for refusing to provide TIN $50 fine for each time the subcontractor supplies he employer with incorrect TIN
Civil charge for providing false info regarding backup withholding Monetary charges from $50
Criminal penalty for deliberate data falsifying Fines (from $50 and above) and/or imprisonment

Make sure you fill out W-9 correctly and submit it in time to avoid charges and penalties. This blank can be completed online and sent via email.