W-9 Forms

Can I refuse to fill out a W9?

Can I refuse to fill out a W9? Yes, you can refuse to fill out Form W9 but only if you’re suspicious of the reason for the request. Whether a business or a person requests it, know the reason for the request.

For example, businesses are required to furnish you with Form 1099-MISC if the total amount of payments made to you were $600 or more during the tax year. You are required to furnish the request with Form W9 in this case so that these tax forms can adequately be filed to report the income you earned.

As long as the requestor needs your Form W9 for tax purposes, you cannot refuse to fill out a W9. If there is no reason for the requestor to need your taxpayer identification number, you can refuse this request.

What happens if I don’t fill out a W9?

If the requestor needs your W9 duly, meaning that your TIN is needed to fulfill tax obligations, you are required to fill out one. If you don’t fill out Form W9 and furnish the requested individual, partner, or entity that is entitled to get your TIN, you will be subject to $50 per violation.

You may also be subject to backup withholding. This is the type of withholding the payer will withhold 24 percent of your income and forward it to the Internal Revenue Service. If the maximum marginal tax rate that applies to you is less than 24 percent, it would mean more than necessary tax will be paid on your behalf.

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