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W-9 Form: What You Need to Know

What you need to know about W9 Form

Updated over 3 months ago

What is a W-9 Form?

The W-9 form is used by U.S. citizens and entities to provide their Taxpayer Identification Number (TIN) to financial institutions and other payers for tax reporting purposes. The IRS requires this form for reporting income, interest, dividends, capital gains, and other financial transactions.

Who Needs to Fill Out a W-9?

You must complete a W-9 form if you are:
✔ A U.S. citizen or green card holder
✔ A resident for tax purposes (living or working in the U.S. or married to a U.S. person)
✔ A U.S.-based corporation, LLC, estate, or trust

Why Are You Being Asked to Complete a W-9?

A U.S. financial institution may request a W-9 to report taxable income, such as:

  • Interest, dividends, and capital gains

  • Mortgage interest paid by you

  • Royalties, rents, or debt cancellations

A foreign financial institution may request a W-9 to comply with FATCA (Foreign Account Tax Compliance Act) regulations, which require reporting on U.S. account holders.

What You’ll Need

  • For individuals: Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)

  • For businesses: Employer Identification Number (EIN)

What If You’re Not a U.S. Person?

If you're a non-U.S. person, you should not complete a W-9. Instead, use:

  • W-8BEN (for individuals)

  • W-8BEN-E (for entities)

What Happens If You Don’t Complete a W-9?

Failure to provide a W-9 may result in:
Withholding tax on certain payments
Inability to open or maintain an account with some financial institutions
Account closure if a foreign institution cannot meet FATCA requirements

Next Steps After Submitting a W-9

If a foreign financial institution requested your W-9, ensure compliance with FBAR (FinCEN 114) and FATCA Form 8938 if you meet the reporting thresholds.

For more details, visit the IRS website or consult a tax professional.

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