Form W-9 is an IRS (Internal Revenue Service) form, which is commonly used by those who work independently or as independent contractors.

With this, the IRS seeks to obtain information about service providers, especially the name of the person or business, address and tax identification number. It is important to clarify that you should not fill out this form if the services provided were as an employee of the company.

Who should present it?

Use of Form W-9 is limited to United States persons defined by the IRS as a citizen or
resident alien; any national estate or trust; and an association, company or corporation created in the United States that is governed by its laws.

How it works?

With the information provided in this form, the company prepares another one called
1099-MISC, and in this form it notifies the total amount paid to the provider during the
previous year, in case the amount is greater than or equal to $600. One copy is then sent to the provider and another to the IRS.

Required information:

• Name
• Address
• Tax identification number or employer identification number.

The W-9 form contains certifications, which the taxpayer must accept under penalty of
perjury. These certifications indicate that the taxpayer is providing the correct
identification number, is not subject to backup withholding, and is a United States
citizen or a person who meets the instructions for Form W-9.

Sanctions

If you do not turn in the W-9 form, you could be penalized with a fine of up to $50.
In addition, the company for which you provide your services can start withholding up
to 28% of your next payment. An example of this is if you receive a check for $200 for
your services, the company would only pay you $148, with the rest retained to give to
the IRS later.
About Form W-9, Request for Taxpayer Identification Number and Certification
https://www.irs.gov/forms-pubs/about-form-w-