This document is filled in by individuals and legal entities of the US in order< to ensure the information of their Taxpayer Identification Number and appropriate certification. It has to be sent to companies to confirm the “tax status” of their employment.
W-9 consists of the following points:
- Country of the contract. Generally, it should be the same contract by which the individual claimed to be relieved from tax as a non-resident foreigner.
- Article of the contract, to which the income relates.
- The number (or location) of an article in a tax treaty that contains a safeguard clause and its exclusions.
- Amount and type of the earnings of the qualified employee for payment exemption.
- Appropriate facts to justify the exemption from payment in accordance with the contract.
Causes when this document is used
W 9 forms for independent contractors is used to inquiry a taxpayer identification number which is USA resident and also to request certain guarantees and applications for exceptions listing. Tax agents have the right to request signed W-9 Forms from payment recipients who are entitled to be exempted from fee in the US, to refute the presumption of a foreign status. Due to the federal purposes, the US residents are:
- Individuals who are US citizens or foreigners who live permanently in the US.
- Partnerships, corporations, companies or associations established or organized in the US or in accordance with laws of this state.
- Any property complexes apart from foreign ones.
- Intrastate trusts.
Due to the government order by signing the W-9 form the person:
- Confirms that the designated TIN is correct.
- Corroborates that one is not subject of requirements of backup withholding.
- Claims the liberation from backup withholding in case American payee allowed the person not to pay the taxes. Depending on the circumstances, the person also confirms that, since the one is US resident, the requirements of withholding from the share of foreign partners do not extend to the percentage of the income of any partnership from trading or economic activities in the US related to this person.
- Confirms the FATCA code(s) indicated in this form or indicating the person is exempt from FATCA reporting are correct.
W-9 paper must be filled correctly and without any mistakes. If at least one mistake was made during filling this paper the individual has to fill out the new one.