What is a W-9?

A W-9 is primarily used to provide taxpayer identification information to entities that will pay you income, such as a freelance client or a business that employs your services. It is essential for tax reporting purposes, as it ensures that the payer has the correct information to report to the IRS, particularly to satisfy IRS regulations. This form collects your name, business name (if applicable), address, and taxpayer identification number (such as a Social Security Number or Employer Identification Number), enabling the payer to issue the necessary 1099 forms at the end of the tax year.

In the context of the other options, a tax exemption form refers to documentation that certifies a person or organization is exempt from paying tax, which does not apply to the W-9. An employee identification form would be utilized to gather employment-specific data for payroll purposes rather than for reporting income received by independent contractors or freelancers. A business license application is a formal request to operate a business legally within a jurisdiction and is unrelated to the W-9’s purpose of tax identification.