Do I Need to Submit a New W9 Form Every Year?
A W9 Form is submitted by independent contractors, freelancers and other individuals or entities that earn non-employee income. This form is submitted each year depending on specific circumstances. In a nutshell, there is no need to resubmit a W9 automatically every year while there are several situations that require updates on the form as outlined below:
- Legal Name Changes: You must submit a new W9 form in case you legally change name information as an individual or business.
- Address Change: Relocation to a new address requires updating your form to ensure accurate recordkeeping.
- Change in Taxpayer Identification Number (TIN): If a new Social Security Number (SSN), Employer Identification Number (EIN) or Individual Taxpayer Identification Number (ITIN) is obtained, a fresh W9 is necessary.
- Entity Classification Change: A switch in the business entity like transitioning from a sole proprietorship to an LLC also warrants a new submission.
- Request from the Payer: Even without changes, the payer might always request a new W9 to confirm their records are current.
The Importance
Providing an accurate W9 helps ensure:
- The payer reports your income correctly to the IRS.
- You avoid delays or errors in receiving payments.
- Backup withholding is not mistakenly applied if your TIN is incorrect or missing.
Best Practices for Managing W9 Forms
In order to fulfill the W9 responsibilities:
- Keep a record of the submitted forms and note when updates might be necessary.
- Notify payers promptly about any changes in your information.
- Review your tax records annually to ensure accuracy.
Conclusion
You don’t need to submit a new W9 form every year unless specific changes emerge or your payer requests one.