Founded in 1981 and expanded in 2016, Doonan Tax Services offers advice and return preparation for taxpayers in New York City and beyond. Doonan Tax Services is able to explain any forms involved in tax calculation and preparation, the W-9 being only one example.
The W-9 form is a part of the financial life of most independent contractors, self-employed professionals, and consultants. It allows a person or organization to provide contracted services to a business, which uses the information provided to report related payments to the Internal Revenue Service. Even those who are employees of a company may see a W-9 if they receive interest or dividends from a bank.
The W-9 requires only basic information from the entity completing it. Individuals must provide a name and social security number, while businesses replace the social security number with an employer identification number (EIN). Because this is identifiable and vulnerable information, the person filling out the form should ensure its secure transmission.
The person filling out the W-9 must also indicate whether he or she, or the relevant organization, is subject to backup withholding. This is a flat withholding rate that applies to persons or organizations whose name and tax identification numbers do not match IRS records, or who have outstanding tax debts.
These circumstances do not apply to most people filling out a W-9. Individuals not subject to backup withholding simply indicate such on a specified certification area of the form. If the person in question is subject to backup withholding, however, he or she will need to strike out the wording that would certify to the contrary.
