W-9

A W-9 is an Internal Revenue Service form used to give a payer the correct legal name and taxpayer identification number needed for certain federal information-reporting purposes.

The form’s official title is Request for Taxpayer Identification Number and Certification. The person completing it normally gives it to the requester rather than filing it directly with the IRS. The requester keeps the information and may use it to prepare a Form 1099 or another required information return. The IRS description of Form W-9 lists income payments and several other reportable transactions among its uses.

A settlement administrator, defendant, or other payer may request a W-9 when a settlement payment could require information reporting. The form supplies a taxpayer identification number, which may be a Social Security number, employer identification number, or individual taxpayer identification number depending on the payee. Providing a W-9 does not establish settlement eligibility, approve a claim, or guarantee payment.

A W-9 request also does not determine whether the settlement money is taxable. The IRS guidance on settlements and judgments explains that tax treatment depends on what the payment was intended to replace and whether a specific exclusion applies. A person can receive an information form even when the final tax treatment requires closer review.

For certain reportable payments, backup withholding may apply if the payee does not provide a taxpayer identification number, the IRS reports that the number is incorrect, or another listed withholding condition applies. The IRS instructions for W-9 requesters state that the current backup-withholding rate is 24 percent. Amounts withheld are generally reported as federal income tax withheld for the year of payment.

Because a W-9 contains sensitive information, verify an unexpected request before responding. Confirm the case, sender, and submission method using independently verified information. Do not send the form through a link or address that appears only in an unsolicited message. If the name or taxpayer identification number may be incorrect, review the current IRS instructions or seek qualified tax advice before submitting the form.