The following situation often occurs: Your landlord asking for W9. At the time of the contract or when renewing it. Even if you pay on time and on a regular basis. What is the reason?
Confidentiality of data
Let’s start with the main one. Gaining access to your individual tax number (ITN) or social security number (SSN) does not allow you to know your income. The IRS can only transfer data with your explicit consent. A landlord with a TIN or SNN will not have access to your income and will not be able to determine your solvency.
According to the state law, each landlord is obliged to form a special guarantee fund in the W-9 form 2020 printable from rent payments. The obligation comes on the condition that the company rents more than 6 units of housing (this may be housing or storage).
The bank charges interest on the funds received from the guarantee fund. The landlord cannot keep this money in his possession. To do so, it must do the following:
- to transfer it to the tenant;
- credit it to the rent;
- take it into account when paying the deposit.
In practice, bank interest is often at 0% or less than 0.1%. The amount is small, the tenant will not receive any additional income even in a few years. But the landlord strictly observes the law. When asking for form W9, he gets access to TIN and SNN numbers to transfer the specified income.
The company requesting needs to comply with the conditions of tax law. If you are asked for tenant W9 form when you sign a tenancy agreement or extension, you must make sure it is in your best interest.