US financial institutions ask you to complete Form W9 in order to obtain your personal identifying information (name, address, tax ID) to report income paid to you to the IRS, such as interest, dividends, capital gains, cancellation of debt, royalties, rents, etc. or income paid by you to the institution, such as
What is a W-9 used for in real estate?
Use Form W-9 to provide your correct Taxpayer Identification Number (TIN) to the person who is required to file an information return with the IRS to report, for example: Income paid to you. Real estate transactions. Mortgage interest you paid.
Who is required to fill out a W9?
Most broadly, Form W-9 must be filled out by independent contractors that perform work for another party with which they are not employed. This includes freelance workers or gig employees under non-employment structures.
Why would I give someone a W9?
Most often, when you're a self-employed contractor, you send it to someone so that they can then send you back Form 1099, which you need to submit to the IRS if someone paid you more than $600 this year. Form W-9 does not get sent to the IRS.
Can I refuse to fill out a w9?
Failure to Provide W-9 – If a vendor or contractor refuses to provide a W-9 when its requested the Payee is subject to a penalty of $50 for each such failure.
Why is a realtor asking for a W9?
A W-9 form is a form your client or the business you work for as a contractor should request from you as you start working together. The form provides the necessary information to the hiring party so they know if they need to later report your payments to the IRS via the 1099 form.