The New IRS Form W-9 Is On Its Way—Are You Prepared?
The recent publication of a draft of the updated Form W-9 indicates that the new version of the form is on its way. This means that withholding agents should take steps now to understand upcoming changes and prepare to collect new W-9 forms from their customers and/or investors.
The Internal Revenue Service’s form W-9, Request for Taxpayer Identification Number and Certification is used to record certain U.S. taxpayer information, including:
- Identification number,
- Exemption(s) from certain reporting requirements, and
- Back-up withholding status.
The new draft of the form, released by the IRS in September, includes an adjusted back-up withholding rate of 24 percent (as established by the Tax Reform Act of 2017). The listed effective date is October 2018. Unlike changes to IRS Forms W-8, which generally include a six-month grace period, Form W-9 is expected to become effective immediately upon publication of the finalized version.
As always, feel free to contact your Lewis, Hooper & Dick, LLC professional advisor with any questions or concerns pertaining to this matter.
For more details on the upcoming release of the new Form W-9, check out this article from RSM.