A Form W-9 is a document that is issued by the United States Internal Revenue Service (IRS) for certain taxation purposes. While W-9′s aren’t filed with the IRS, so they should be collected by those clients or companies that hire independent contractors, or freelancers. Also for earnings received by financial institutions W-9′s are used.
A W-9 is used to collect the necessary information about the independent contractor. The form requires to fill the information as to the freelancer’s name, address, and social security or tax payer identification number.
Required to produce Form 1099
The client or company in order to produce a Form 1099 will use the information that is collected on the W-9, or substitute W-9. The form contains the details of the earnings that the independent contractor received from that client that tax year. The Form 1099 is then sent to both the independent contractor and the IRS; it is the requirement of some states that the form 1099 has to be mailed separately.
