The Internal Revenue Service requires all employed citizens of the United States to report their taxable income. Amount of income influences on how much money has to be withheld. IRS provides independent contractors and freelancers with W9 2018 form to complete. It is also called the Request for Taxpayers Identification Number and Certification. This template works for different types of businesses and is quite straightforward. However, it’s very important to prepare this document correctly as you may encounter some issues. Here the piece of advice to avoid problems concerning tax reporting.
According to the law, it’s only acceptable to receive a W-9 form from the parties, that are intended to pay you dividends, interest, non-employee compensation or any other type of reportable income. Some people get requests from landlords or businesses. Consider, that completing this template, you provide your personal data and your taxpayer identification number. Such information is required by IRS, so if someone unexpected asks you to supply it without any valid reason, think twice. At least you may consult with a tax professional.
Be careful disclosing sensitive information. There should be only secure channels to send such documents. For example, you may send a W-9 2018 form delivering by hand or via regular mail. Choose only secure delivery method. In case, you decide to send this document via email, use it as an encrypted attachment. For greater certainty, use reliable online platforms that allow you to complete such samples electronically. There is a variety of samples online. Find an appropriate one, fill it out and submit it instantly. Use encrypted connection benefits.
The Request for Taxpayers Identification Number and Certification should be supplied only to independent contractors and freelancers. All the employees, who get a constantly paid salary should complete a W-4. In case, you were always considered being an employee, but your manager asks you to fill out W-9, it means he or she wants to treat you as an independent contractor. This can be tricky. There are few legal reasons for such a decision, but it can be a red flag. It may be a sign of your employer’s financial difficulties. Perhaps, he or she is no longer able to pay an obligatory part of payroll taxes.