Who Should Prepare 2019 W9 Form?

The W-9 IRS form (also known as the informational return) is used by companies and organizations for preparing one of the 1099 templates. It includes information about any payment over six hundred dollars in either an electronic or physical money transaction. Details concerning both parties involved in a transaction are added to the form w-9 printable.

Instructions for Correct Document Preparing

The w9 2019 may be required in case an independent contractor or person (not officially hired by the organization) provides any services to it (but only those, connected with business needs, not individual ones).

Let’s have a closer look at the template and define what specific information should be provided:

1. The first thing to add is the name of the individual who completes the sample.
2. The next line can coincide with the first one if the company name is the same as the individual’s name. If they are different, then provide the business name as it’s mentioned in official documents.
3. Type in the correct entity, according to the IRS specifications. For example, an LLC with more than one owner and nonprofit organizations are taxed as C or S corporations. Nonprofit firms can be classified as “Other” or “nonprofit corporation”.
4. This form also includes the Employer Identification Number, needed to define the taxpayer by the Internal Revenue Service. It is important that every company have the EIN. Those who do not have the number should complete the application to get one. If you have completed the application and did not receive it yet, type in “applied for”.
5. The exempt code is not obligatory to be inserted in the sample. In most cases, Individuals are not free from any backup withholdings.

What are the Form W-9 Exemptions?

The part of the document connected with organizations released from tax payments may include the following:

1. Any entity exempt for interest or dividends, but not exempt from backup withholding connected with gross proceeds.
2. Financial institutions are free from the backup withholding, as well as foreign governments and their institutions.
3. US state and governmental agencies.
4. Real Estate investment trusts and A corporations.
5. A trust that is operated by the bank, belonging to section 584(a).

To better define the company and its needed tax plan, refer to the instructions available at the official IRS website.