Form W-9 collects a contractor's taxpayer identification number (TIN) so the paying business can report payments on a 1099 at year-end. The contractor fills it out, the business keeps it — it is never sent to the IRS.
- Request a W-9 from every independent contractor before the first payment
- If a contractor refuses, you must withhold 24% as backup withholding
- W-9 data feeds directly into 1099-NEC and 1099-MISC preparation
What Is Form W-9?
Form W-9, Request for Taxpayer Identification Number and Certification, is used by businesses to collect the legal name, address, and TIN (Social Security number or EIN) of independent contractors, freelancers, and other payees. The form stays with the requesting business and is used to prepare year-end information returns like the 1099-NEC.
Think of the W-9 as the contractor equivalent of an employee's W-4 — it provides the identifying information needed for tax reporting, though it works differently.
Who Needs to Provide a W-9?
Any non-employee payee who will receive $600 or more during the year should provide a W-9. Common situations include:
Payments to C corporations and S corporations generally do not require 1099 reporting (and thus no W-9 is needed). The major exceptions are payments to attorneys and medical/health care providers, which must be reported regardless of corporate status.
How to Fill Out the W-9
The W-9 is a single page with seven lines:
Line 1: Name
Line 2: Business Name
Line 3: Federal Tax Classification
Lines 5-6: Address
Line 7: TIN (SSN or EIN)
The W-9 contains sensitive information (SSN or EIN). Never send it via unencrypted email. Use a secure portal, encrypted email, fax, or hand-deliver it. Many businesses use payroll software with secure W-9 collection built in.
TIN Verification
The IRS recommends verifying the TIN provided on the W-9 against the contractor's name. You can do this through the IRS TIN Matching program, which is available to businesses registered for e-services.
If the name/TIN combination does not match IRS records, you will receive a CP2100 notice (or B Notice) from the IRS after filing 1099s. At that point, you must begin backup withholding at 24% on future payments until the contractor provides a corrected TIN.
Penalties for Not Providing a W-9
Penalties affect both the payee (contractor) and the payer (business):
| Party | Penalty | Trigger |
|---|---|---|
| Contractor (payee) | 24% backup withholding | Fails to provide TIN or provides incorrect TIN |
| Contractor (payee) | $50 per failure | Provides a false TIN to avoid reporting |
| Business (payer) | Up to $310 per form | Files 1099 with incorrect or missing TIN |
| Business (payer) | Failure to withhold penalty | Does not apply backup withholding when required |
Connection to 1099 Reporting
The W-9 is step one in the 1099 reporting process. Here is how the two forms connect:
| W-9 Field | 1099 Field | Notes |
|---|---|---|
| Line 1 (Name) | Payee name | Must match IRS records exactly |
| Line 7 (TIN) | Payee TIN | SSN or EIN used for IRS matching |
| Lines 5-6 (Address) | Payee address | Where the 1099 copy is mailed |
| Line 3 (Entity type) | Determines filing requirement | Corporations usually exempt |
Frequently Asked Questions
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Related Forms
Form W-4
Complete guide to the W-4 form — how employees claim withholding allowances, when to update it, and how employers process it for federal income tax withholding.
Form W-2
Everything employers need to know about the W-2 form — filing deadlines, box-by-box instructions, corrections, and electronic filing requirements.
Form 1099-NEC
Complete guide to the 1099-NEC form — who gets one, filing thresholds, deadlines, electronic filing, and penalties for late or incorrect submissions.