One of the laws that pertains to the Form W-9 is listed in the Privacy Act section of the instructions. It is the only law pertaining to the Form W-9 that is listed. The Privacy Act section states in part:
Privacy Act Notice
Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons (including federal agencies) who are required to file information returns with the IRS to report interest, dividends, or certain other income paid to you; mortgage interest you paid; the acquisition or abandonment of secured property; the cancellation of debt; or contributions you made to an IRA, Archer MSA, or HSA.
Section 6109 was presented and examined on the last page. From that examination on the last page, the following points are brought forward and applied to this page's examination.
- Only nonresident aliens and foreign persons as described in paragraph (b)(2)(i), (ii), (iii), (vi), (vii), or (viii) of the implementing regulation are required to furnish an identifying number "under authority of law."
- Therefore only persons making payments to nonresident aliens and foreign persons are required to file information returns with the IRS regarding those payments.
Since section 6109 is the only law cited as authority for the Form W-9, it should be sufficient at this point to end any further blather from the howling experts regarding a requirement to furnish an identifying number on the W-9. Nevertheless, there is more evidence that also proves the Form W-9 is not required from a Citizen living and working in any of the 50 States united.
The W-9 instructions state:
Purpose of Form
A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA.
- This statement does not say who is required to file an information return.
- A person who is not required to file an information return is not required to obtain your number.
The instructions continue:
Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN to the person requesting it (the requester)
Observe that a resident alien can be a U.S. person.
The instructions continue:
and, when applicable, to:
2. Certify that you are not subject to backup withholding,
- If you are not being paid anything that would be subject to backup withholding, then there is no need to certify that you are not subject to backup withholding.
The instructions also state:
What is backup withholding? Persons making certain payments to you must under certain conditions withhold and pay to the IRS a percentage of such payments. This is called “backup withholding.”
"Must under certain conditions..." What are those "certain conditions"? The law will tell you. The law will be examined on the next page.
And the instructions also state:
Part II. CertificationWho is a "withholding agent"?
To establish to the withholding agent that you are a U.S. person, or resident alien, sign Form W-9.
TITLE 26 - INTERNAL REVENUE CODE
Subtitle F-Procedure and Administration
26 USC Sec. 7701(a)(16) Withholding agent
The term "withholding agent" means any person required to deduct and withhold any tax under the provisions of section 1441, 1442, 1443, or 1461.
26 CFR Sec. 1.1441-7(a)(1)
For purposes of chapter 3 of the Internal Revenue Code and the regulations under such chapter, the term withholding agent means any person, U.S. or foreign, that has the control, receipt, custody, disposal, or payment of an item of income of a foreign person subject to withholding...
What taxes are to be deducted and withheld under the provisions of sections 1441, 1442, 1443, or 1461?
CHAPTER 3 - WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS
Sec. 1441. Withholding of tax on nonresident aliens
Sec. 1442. Withholding of tax on foreign corporations
Sec. 1443. Foreign tax-exempt organizations
Sec. 1446. Withholding of tax on foreign partners' share of effectively connected income
- American Citizens being compensated for supplying labor or services solely within the 50 States united do not interact with "withholding agents";
- Therefore, American Citizens do not need to sign a Form W-9 to establish anything to a withholding agent..
More information regarding "withholding agents" will be shown on the next page.
The IRS publication Instructions for the Requester of Form W-9 states:
Payments Exempt From Backup Withholding
Payments that are not subject to information reporting also are not subject to backup withholding.
- If a Citizen's compensation of labor and services is not subject to information reporting then that compensation is not subject to backup withholding either.
- If a Citizen's compensation of labor and services is not subject to information reporting then no identifying number is required.
As of the writing of this web page, you can verify the W9 instructions on the IRS' own web site at these locations: