After the person receives the W-9 form, he needs to fill out his TIN in the appropriate field. If he/she is a foreign resident (a foreign national who is considered to be permanently resident in the United States) and does not have an SSN or are not eligible to receive one, the TIN is an individual charge identification number (ITIN) assigned by IRS.
One should enter it in the field of a social security number. If the employee does not have an ITIN, it is necessary to apply to the IRS. If a person has several official employers, they all can require a W-9 in 2019.
US Taxpayer Definition
For federal cess purposes, a citizen is a US taxpayer if he/she is:
- an individual who is a US citizen or a foreign resident;
- a partnership, corporation, company, or association created or organized in the United States or accordance with the laws of the United States;
- property complex (except a foreign property complex);
- local trust.
Penalties for Incorrectly Submitted W-9 Tax Form
|Failure to submit correct data||Civil penalty concerning false information regarding retention||Criminal punishment for falsifying information||TIN abuse|
|If the resident does not present his correct TIN to the requestor, he/she may be fined $ 50 each failure. An exception is when a resident did not provide a TIN for valid reasons, and not as a result of intentional neglect.||If a resident makes a false declaration file without reasonable justification, so the additional cess withholding did not take place, he/she will receive a fine of $ 500.||The deliberate falsification of confirmations or statements may become the basis for bringing you to criminal liability, including the imposition of fines and (or) imprisonment.||If the requestor should follow form W-9 retention requirements. If the employer discloses the data or uses it in violation of federal law, the requestor may be held civilly and criminally liable.|
Tax Information Update
Each charge payer must provide complete updated information to any person to whom he previously reported his data. This is especially important about those who lose the status of an exempt payee and expect to receive future payments. For example, a taxpayer must provide updated information if he is an C-corporation, but decides to become an S-corporation.
Besides, the taxpayer must sign a new W-9 form in case of a change in the name / TIN of the account, as an example – the death of the founder of the trustee trust. An individual or legal entity (an employer requesting charge paper) required to submit an information tax return to the IRS must receive the correct cess identification number (TIN). It is necessary to provide information in the electronic charge report according to the amounts paid to residents or other incomes concerning of which the W-9 form is submitted in 2019.