A W-9 type is an official doc from the Inner Income Service (IRS) used to gather info from people or entities who obtain funds from companies. For instance, if a freelancer gives providers to an organization, the corporate could require the freelancer to fill out a W-9 type in order that the corporate can report the funds to the IRS.
The W-9 type is vital as a result of it helps companies adjust to federal tax reporting necessities. Companies are required to report funds to people or entities who obtain greater than a sure amount of cash from them in a given yr. The W-9 type helps companies monitor who they’ve made funds to and the way a lot they’ve paid every individual or entity.