W-9s collect Taxpayer Identification Numbers (TINs) and Social Security Numbers (SSNs) from individuals and businesses. It is the form you use when looking for information regarding vendors, independent contractors, sole proprietors, or freelancers. Generally, anyone receiving $600 or more from your business or trade in a calendar year must provide a W-9 form.

For example, if you hire a freelance graphic designer to create your logo, you’ll need a W-9 form. You’ll need a W-9 form from your neighbors if you hire them to mow the lawn.

Additionally, it serves as proof that an information return is not required. This often occurs when company or nonprofit organizations fill out the form.

Best Practices for W-9 Form 2022

Before you make your first payment, get a Form W-9 from your vendor. Business owners need to complete and certify forms for tax purposes, so this ensures completion and certification. Even though the form doesn’t change often, it’s a good idea to request an updated Form W-9 every year or once you notice a change in the vendor’s information. This way, you can ensure you have the most current information.

Can Form W-9 be Signed Electronically?

If IRS guidelines are followed, electronic W-9s are legal. According to the IRS’s Instructions for the Requester of Form W-9, the IRS supports electronic submission of Forms W-9. If the requester establishes a system, payees and payees’ agents may submit Forms W-9 electronically, including by fax.