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Taxes and all of those forms… Why don’t we face it, tax forms can more often than not be difficult to understand. There are a wide range of questions folks ask when they get or need to send out tax forms. One of the more general questions is, if you receive a W9 form request, exactly what should you do with it?
Well if you receive a W9 request then in accordance to the Internal Revenue Service you need to reply to it, provided that person looking for it is responsible to give you a 1099 form (this is an information return). If they are not required to give you a 1099 form (information return), well that is a entirely different story.
So what will happen if you don’t reply to the tax form W9 request?
If you do not reply to the tax form W9 request you will be subject to a fifty dollar penalty and furthermore future backup withholding. Backup withholding? you may ask, well if choose not to give the info needed to a required filer of an 1099 Form (information return, not to be confused with a 1040 form) they are required to withhold up to twenty eight percent which is remitted to the government.