How often do you need to update W-9?
October 17, 2011 // Posted by: creditrisk // Category: Personal Finance
A thorough understanding of the federal tax system is quite complicated & one needs years of detailed study to digest it. Also, the norms & policies keep changing as the market & financial trends change. As an investor, or as a businessman, you need to be thorough with the tax aspects applicable within your state or your nation, so as to avoid any legal complications. Within the US boundaries, the W-9 form refers to a documentation a service provider must provide to the IRS (Internal Revenue Service), especially when he has an annual transaction of at least $600 with any of his clients.
A W-9 form includes your business information and is directed towards the requester. This information should be kept updated by the business. $600 serves as the lower reporting limit for filing the W-9 form to the IRS. This documentation is also required when deciding over the dividend to be paid to the investors.