Independent contractors are commonly asked to provide Form W-9 as part of U.S. tax reporting and payment documentation. This page explains why Form W-9 is requested from independent contractors and how it is used in this context.
Why Independent Contractors Are Asked for Form W-9
Independent contractors often receive payments that are subject to U.S. information reporting requirements. Form W-9 allows the payer to obtain the contractor’s taxpayer identification number (TIN) and confirm U.S. taxpayer status.
The information collected on Form W-9 is used to support accurate reporting of payments made to independent contractors.
How Form W-9 Is Used for Contractor Payments
When an independent contractor provides Form W-9, the payer retains the form for recordkeeping and reporting purposes.
The information from Form W-9 may later be used by the payer to prepare information returns, such as Forms 1099, that report payments made to the contractor.
For a general explanation of the form itself, see IRS Form W-9 explained.
Who Provides Form W-9 in a Contractor Relationship
In a typical contractor relationship:
- the independent contractor provides Form W-9;
- the payer or client requests and retains the form;
- Form W-9 is not filed with the IRS by the contractor.
The responsibility to request and retain Form W-9 rests with the payer making reportable payments.
Form W-9 and Backup Withholding for Contractors
If a valid Form W-9 is not provided when required, U.S. tax rules may require the payer to apply backup withholding to certain contractor payments.
This outcome is based on withholding and reporting rules, not on the contractor’s employment status.
More detail is available in backup withholding explained.
Independent Contractors vs Employees
Form W-9 is used for independent contractors, not for employees.
Employees generally complete different tax forms as part of the employment process, while independent contractors use Form W-9 to provide taxpayer information for reporting purposes.
Related Clarifications
- What happens if you don’t provide Form W-9
- Is it safe to provide Form W-9
- Difference between Form W-9 and W-8
Official Reference
For the official version of the form and IRS-issued instructions, see the official Form W-9 reference.