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When do I need to obtain a W9 statement?If you are an independent contractor, or any employee other than a foreign national (in which case you need to use a W-8 form), then you need to obtain a W-9 statement before you begin work, even if it's just for a one-time job, such as refereeing a high school basketball game. A W-9 form is an IRS form that is also called a "Request for Taxpayer Identification Number and Certification."The W-9 form is used by any individual defined under law as a "U.S. person" or "resident alien" to verify his or her taxpayer identification number (TIN) with an employer or other entity.
Any entity with which you interact that is required to file any sort of information return with the IRS that includes interactions with you as an individual must have your TIN.The entity, whether it's an employer, a mortgage company, a real estate company, and so on, must have your correct Taxpayer Identification Number in order to report you accurately to the IRS.Even any company that issues dividends to shareholders must have your Taxpayer Identification Number when filing an information report with the IRS. Don't forget your rights, however.Even though you are required by law as an employee to give certain information to your employer, your privacy is still protect under similar laws.This means that if your employer uses your personal information, such as your Social Security Number, for any unlawful use, or shares it with anyone else, then they can be charged in both a civil and a criminal court of law. Once again, if you are defined under law as a "foreign person" rather than a "U.S. person" when you are filing your federal taxes, then you have to use the correct W-8 form rather than the W-9 form. |
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