If someone has asked you to complete Form W-9, you may be wondering what you are signing, why they need it, and what the IRS does with the information. Form W-9 is one of the most commonly requested tax forms in the United States, but it is also one of the most misunderstood.
Form W-9, officially titled Request for Taxpayer Identification Number and Certification, is the form a payer uses to collect your taxpayer identification number (TIN), legal name, and federal tax classification. The information is then used to prepare information returns such as
Forms 1099 and to determine whether backup withholding applies.
For businesses, collecting a W-9 is a standard part of onboarding contractors, vendors, and certain other payees. For freelancers, self-employed individuals, landlords, investors, and some businesses, completing a W-9 accurately helps avoid payment delays, TIN mismatch notices, and backup withholding.
This guide explains what Form W-9 is, who should complete it, who should not, how to fill it out line by line, how businesses use it, and what changed for 2026 reporting thresholds.
What Is Form W-9?
Form W-9 is an IRS form used by a requester to obtain a U.S. payee’s correct taxpayer identification number and certification. The form is used when the requester may need to file an information return with the IRS.
The W-9 is not filed with the IRS by the payee. Instead, it is given to the person or business requesting it, and that requester keeps it in their records. The requester then uses the information from the W-9 to prepare forms such as Form 1099-NEC, Form 1099-MISC, Form 1099-INT, Form 1099-DIV, Form 1099-S, and other information returns when required.
By signing Form W-9, the payee certifies, under penalties of perjury, that the TIN provided is correct or that they are waiting for one to be issued, that they are not subject to backup withholding unless notified otherwise, and that they are a U.S. person when the form is being used for that purpose.
What Form W-9 Is Used For
A requester uses Form W-9 to collect information needed for IRS information reporting. The form can be used in connection with:
- Income paid to you
- Real estate transactions
- Mortgage interest you paid
- Acquisition or abandonment of secured property
- Cancellation of debt
- Contributions you made to an IRA
- Interest, dividends, and certain broker transactions
In day-to-day business, the most common use is collecting a W-9 from a contractor, vendor, or service provider before issuing a Form 1099 if reporting is required.
Who Needs to Fill Out a W-9?
You may be asked to complete Form W-9 if you are a U.S. person and a payer needs your tax information for reporting purposes.
Independent Contractors and Freelancers
Independent contractors commonly complete Form W-9 for clients that pay them for services. This includes consultants, designers, bookkeepers, accountants, virtual assistants, software developers, photographers, writers, and many other self-employed workers.
For 2026, the IRS states that Form 1099-NEC generally applies when a business pays a nonemployee $2,000 or more for services during the calendar year for payments made after December 31, 2025.
Vendors and Service Providers
A business may request Form W-9 from outside vendors and service providers as part of its vendor setup process. Even when a payment may not ultimately be reported, many payers collect the form up front so they have accurate tax information on file if reporting later becomes required.
Landlords and Certain Other Payees
A W-9 may also be requested for payments that may be reported on Form 1099-MISC, including rents, prizes and awards, certain other income payments, medical and health care payments, certain attorney payments, and other specified payments.
For 2026, the IRS states that many Form 1099-MISC payments generally move from a $600 reporting threshold to a $2,000 threshold for payments made after December 31, 2025, while royalties and broker payments in lieu of dividends or tax-exempt interest remain reportable starting at $10.
Interest, Dividends, and Financial Accounts
Banks, brokerages, and other payers may request a W-9 for accounts that generate interest, dividends, or certain other reportable amounts.
In those situations, the form helps the payer report income correctly and determine whether backup withholding applies.
Partnerships, Corporations, LLCs, Trusts, and Estates
Entities may also be asked for a W-9. The correct federal tax classification matters because reporting and withholding treatment can differ depending on whether the payee is an individual, sole proprietor, LLC, partnership, C corporation, S corporation, trust, or estate.
Who Should Not Use Form W-9?
Not everyone should complete a W-9.
Employees
Employees do not use Form W-9 for wage withholding. Employees complete Form W-4, which tells the employer how much federal income tax to withhold from wages.
Foreign Persons
Form W-9 is for U.S. persons. Foreign individuals and foreign entities generally should not use Form W-9. Instead, the appropriate form is usually from the W-8 series, such as Form W-8BEN for foreign individuals or Form W-8BEN-E for foreign entities, depending on the situation.
Some Exempt Payees
Some payees may be exempt from backup withholding or certain information reporting rules. Even so, a requester may still ask for a W-9 to document tax classification and exemption status.
Key Information Required on Form W-9
Form W-9 is short, but every field matters. The requester relies on the form to match your information to IRS records and determine how to report payments.
Line 1: Name
Enter your name exactly as shown on your federal income tax return. For individuals, this generally means the legal name associated with your Social Security number.
Line 2: Business Name or Disregarded Entity Name
Enter your business name, trade name, DBA, or disregarded entity name if it is different from the name on Line 1.
Line 3: Federal Tax Classification
Check the box that matches your federal tax classification. Options include:
- Individual or sole proprietor
- C corporation
- S corporation
- Partnership
- Trust or estate
- LLC
- Other
If you are an LLC, the form may require you to identify whether the LLC is taxed as a C corporation, S corporation, or partnership.
Line 4: Exemptions
This line is used for exemption codes for certain exempt payees and FATCA reporting codes where applicable. Many individuals and small businesses leave this line blank.
Lines 5 and 6: Address
Enter your mailing address, city, state, and ZIP code.
Line 7: Account Number
This line is optional and may be used by the requester for internal account identification.
Part I: Taxpayer Identification Number
Enter the TIN that matches the name on Line 1.
Depending on the payee, the TIN may be a:
- Social Security number (SSN)
- Employer identification number (EIN)
- Individual taxpayer identification number (ITIN)
- Adoption taxpayer identification number (ATIN)
Part II: Certification
Sign and date the form when a signature is required. The signature is a certification under penalties of perjury.
How to Fill Out Form W-9 Correctly
The most important rule is that the name on Line 1 and the TIN in Part I must match IRS records.
Individuals
If you are an individual and not operating through a separate tax entity, enter your legal name on Line 1 and your SSN in Part I.
Sole Proprietors
For 2026, the IRS requester instructions state that a payee classified as a sole proprietor must furnish an SSN. That is an important clarification and a change from the way many older guides described the form.
Single-Member LLCs Treated as Disregarded Entities
For a single-member LLC classified as a disregarded entity, the IRS states that Form W-9 should provide the owner’s TIN, which for an individual owner is generally the owner’s SSN or EIN, not the LLC’s EIN.
This is one of the most common problem areas on Form W-9.
Multi-Member LLCs, Partnerships, and Corporations
If the entity is taxed as a partnership or corporation, the entity generally provides its entity name and EIN. If an LLC elected corporate tax treatment, it should be completed consistent with that election.
Resident Aliens
A resident alien who does not have and cannot obtain an SSN enters an ITIN in the space for the SSN, according to the IRS requester instructions.
What Is a TIN?
A TIN is the taxpayer identification number the IRS uses to identify the payee.
Social Security Number (SSN)
An SSN is generally used for individuals. For 2026, the IRS specifically states in the requester instructions that sole proprietors use an SSN.
Employer Identification Number (EIN)
An EIN is generally used by corporations, partnerships, trusts, estates, and entities that should report using the entity’s tax identity. For a single-member LLC treated as a disregarded entity, the IRS states that the owner’s EIN may be used if the owner is the payee, but the LLC’s
EIN should not be used for payee identification purposes on Form W-9.
Individual Taxpayer Identification Number (ITIN)
An ITIN may be used when the IRS allows it, including for certain resident aliens who do not have and cannot obtain an SSN.
Adoption Taxpayer Identification Number (ATIN)
An ATIN is also listed by the IRS as a possible TIN for limited situations.
Why Businesses Request a W-9
Businesses request W-9s so they can meet information reporting and backup withholding obligations.
To Prepare Forms 1099 and Other Information Returns
The W-9 provides the legal name, TIN, and federal tax classification the payer needs to prepare forms such as:
- Form 1099-NEC for nonemployee compensation
- Form 1099-MISC for certain rents, prizes, awards, attorney payments, and other reportable payments
- Form 1099-INT for interest
- Form 1099-DIV for dividends and distributions
- Form 1099-S for certain real estate transactions
- Other information returns when applicable
- To Determine Whether Backup Withholding Applies
A payer may have to withhold tax if the payee fails to provide a correct TIN, fails to provide required certifications, or has been identified by the IRS as subject to backup withholding.
To Maintain Records
The IRS instructs businesses that if they have determined a worker is an independent contractor, the first step is to have the contractor complete Form W-9. The IRS also states that the W-9 should be kept in the payer’s files for four years for future reference.
How the IRS Uses W-9 Information
The IRS generally does not receive the W-9 itself. Instead, the payer uses the information from the W-9 to prepare information returns.
That information is important because the IRS uses information returns to:
- Match income reported by payers to the recipient’s tax return
- Validate name and TIN combinations
- Administer backup withholding rules
- Support compliance reviews and audits
The IRS also offers TIN Matching e-services for certain payers to validate name and TIN combinations.
Backup Withholding: What It Is and When It Applies
Backup withholding is a federal withholding requirement that can apply to certain reportable payments.
2026 Backup Withholding Rate
For 2026, the IRS states that the backup withholding rate remains 24%.
When Backup Withholding Can Apply
According to the IRS requester instructions, backup withholding can apply if:
- The payee fails to furnish a TIN
- The IRS notifies the payer that the payee’s TIN is incorrect
- The IRS notifies the payer that the payee is subject to backup withholding because of underreported interest or dividends
- The payee fails to certify when certification is required
- If You Are Already Subject to Backup Withholding
If the IRS has notified you that you are currently subject to backup withholding because of underreported interest or dividends, the certification on Form W-9 must be completed accordingly. The IRS instructions address when item 2 in the certification must be crossed out.
How Backup Withholding Stops
The IRS states that backup withholding stops when the underlying issue is corrected. Depending on the reason, that may involve providing the correct TIN, resolving underreported income, paying the amount owed, or filing missing returns. Publication 1281 also provides rules for requesters on when backup withholding must stop after proper certification is received.
2026 Reporting Threshold Updates That Matter
One of the biggest practical changes for 2026 is the increase in the information reporting threshold for certain payments.
Form 1099-NEC Threshold for Services
For payments made after December 31, 2025, the IRS states that the reporting threshold for many nonemployee compensation payments increases from $600 to $2,000.
Form 1099-MISC Threshold for Many Business Payments
For payments made after December 31, 2025, the IRS states that many Form 1099-MISC payment categories also increase from $600 to $2,000.
Royalties Still Have a Lower Threshold
The IRS continues to list $10 as the reporting threshold for royalties and broker payments in lieu of dividends or tax-exempt interest.
What Did Not Change
The increase in the information reporting threshold does not eliminate the need for accurate W-9 collection. Businesses still need correct tax information when a payment becomes reportable, when backup withholding rules may apply, or when internal compliance procedures require vendor tax documentation before payment.
Common W-9 Mistakes
The most common W-9 problems are avoidable.
Using a Name That Does Not Match IRS Records
The name on Line 1 must match the TIN used in Part I.
Using the Wrong TIN for a Disregarded Entity
For 2026, the IRS expressly states that a disregarded single-member LLC uses the owner’s TIN, which may be the owner’s SSN or EIN depending on the owner, and the disregarded entity EIN should not be used for payee identification purposes.
Checking the Wrong Tax Classification
Entity classification errors can lead to bad records, incorrect reporting, and follow-up notices.
Forgetting the Certification
When a signature is required, an unsigned form is not a properly completed certification.
Assuming “Applied For” Always Prevents Backup Withholding
It does not. IRS requester instructions say the 60-day awaiting-TIN rule applies to interest, dividends, and certain readily tradable instruments.
For other reportable payments, such as nonemployee compensation, backup withholding can apply immediately even if the payee has applied for a TIN and is waiting for it.
W-9 vs. W-4 vs. W-8BEN vs. 1099
These forms serve different purposes.
Form W-9
Used by a U.S. payee to provide a correct TIN and certifications to a requester.
Form W-4
Used by an employee to tell an employer how much federal income tax to withhold from wages.
Form W-8BEN or W-8BEN-E
Used by foreign persons to establish foreign status and, where applicable, claim treaty benefits or reduced withholding.
Forms 1099
Prepared by the payer to report certain payments to the IRS and to the recipient.
When to Provide an Updated W-9
There is no fixed annual expiration date for Form W-9, but a new form should be provided when important information changes.
Common examples include:
- Legal name change
- Change in tax classification
- Change from sole proprietorship to LLC or corporation
- New EIN or other TIN change
- Entity restructuring or ownership change affecting tax identity
- Request from a payer to refresh records
Can a W-9 Be Submitted Electronically?
Yes. The IRS requester instructions state that requesters may establish a system for payees to submit Forms W-9 electronically, including by fax, as long as the electronic system satisfies the IRS requirements for authentication, record retention, and electronic signature when required.
How Long Should a Business Keep Form W-9?
The IRS states that if a business has determined that a worker is an independent contractor, the W-9 should be kept in the payer’s files for four years for future reference.
Conclusion
Form W-9 is a foundational IRS tax form for collecting a payee’s correct name, TIN, and tax classification. It helps businesses prepare information returns, determine whether backup withholding applies, and maintain records that support year-end compliance.
For 2026, two practical points matter more than ever. First, the backup withholding rate remains 24%. Second, the IRS states that the reporting threshold for many Forms 1099-NEC and 1099-MISC rises from $600 to $2,000 for payments made after December 31, 2025, while some categories such as royalties remain subject to a $10 threshold.
Just as important, the IRS guidance clarifies that sole proprietors use an SSN and disregarded single-member LLCs use the owner’s TIN, generally the owner’s SSN or EIN, rather than the entity EIN for payee identification. Completing the form with the correct name, tax classification, and TIN is the best way to avoid backup withholding problems and year-end reporting errors.
Frequently Asked Questions
Do I send Form W-9 to the IRS?
No. Form W-9 is generally given to the requester, not filed by the payee with the IRS. The requester keeps it in their records and uses it to prepare information returns if needed.
Do employees fill out Form W-9?
No. Employees generally complete Form W-4, not Form W-9.
Do foreign contractors use Form W-9?
Generally no. Foreign individuals and foreign entities typically use the appropriate W-8 form instead.
What is the backup withholding rate in 2026?
The IRS states that the backup withholding rate for 2026 remains 24%.
What is the 1099-NEC threshold in 2026?
For payments made after December 31, 2025, the IRS states that the threshold for many nonemployee compensation payments increases from $600 to $2,000.
What is the Form 1099-MISC threshold in 2026?
For payments made after December 31, 2025, the IRS states that many Form 1099-MISC payment categories move from $600 to $2,000, while royalties remain reportable starting at $10.
Can a sole proprietor use an EIN on Form W-9?
For 2026, the IRS requester instructions state that a payee classified as a sole proprietor must furnish an SSN.
What TIN does a disregarded single-member LLC use on Form W-9?
For 2026, the IRS states that a disregarded single-member LLC must furnish the owner’s TIN, which is generally the owner’s SSN or EIN, and the LLC’s EIN should not be used for payee identification purposes.
Need Help With W-9 Collection, 1099 Reporting, or Contractor Tax Compliance?
Toran Accounting LLC helps businesses and self-employed individuals handle W-9 collection, 1099 compliance, contractor onboarding, and tax planning. If you need help building a clean vendor onboarding process or reviewing your year-end reporting procedures, contact our team to schedule a discovery call.
