W-9 vendor review: 4 checks before payment

• Check the name: For disregarded entities, the owner’s name goes on line 1 and the entity’s name on line 2, according to Internal Revenue Service.
• Check the classification: A disregarded LLC checks the box for the owner’s tax classification on line 3a, according to Internal Revenue Service.
• Check the TIN format: Verify the identifier matches the standard format, such as 000-00-0000 for an SSN or 00-0000000 for an EIN, according to Legal Information Institute.
• Check the certification: Confirm the form is signed where required and matches the payment type, keeping exceptions narrow.

Mark the record as checked or missing evidence based on these points.

The four checks are an editorial grouping to structure the review queue, not an IRS four-step standard. The Internal Revenue Service defines the form’s purpose in its requester instructions. According to Internal Revenue Service, use Form W-9 to request the taxpayer identification number (TIN) of a U.S. person (including a resident alien) and to request certain certifications and claims for exemption. This definition sets the scope for what the form collects. It does not determine worker status or resolve every withholding obligation.

The first check concerns the name. The form requests the name of the U.S. person. For a disregarded entity, this may be the owner’s name rather than the LLC’s own name. The second check concerns the federal tax classification. The form includes boxes to indicate the entity’s classification for federal tax purposes. The third check concerns the TIN. The form requests the specific type of TIN, such as an SSN or EIN. The fourth check concerns the certification. The form includes a certification section where the taxpayer signs, unless the form is not required to be signed.

Review the name fields and tax classification boxes on the vendor’s Form W-9 to ensure the entity structure is documented correctly. The Instructions for the Requester of Form W-9 (03/2024) provide specific guidance for how to complete these lines based on the vendor’s legal status.

Check 1: Verify name placement for disregarded entities For proper processing, information for disregarded entities is reported as the owner’s name on line 1, and the disregarded entity’s name is entered on line 2, according to Internal Revenue Service. This distinction is critical for single-member LLCs and similar structures that are treated as disregarded entities for federal tax purposes. Do not swap these entries.

Check 2: Confirm the tax classification box The classification on line 3a indicates how the vendor is taxed. For a Limited Liability Company (LLC) that is a disregarded entity, the form should be filled out by checking the appropriate box for the tax classification of its owner in the first row on line 3a, according to Internal Revenue Service. This means the box checked reflects the owner’s status (such as individual or corporation) rather than the LLC itself, because the LLC is disregarded.

For an LLC that is not disregarded, line 3a has a single box to check and available entry space for the LLC to notate the proper tax classification as corporation, S corporation, or partnership (C, S, or P), according to Internal Revenue Service. In this case, the vendor is a separate taxable entity. The reviewer should look for the single box checked and the letter notation (C, S, or P) in the entry space. If the box is unchecked or the notation is missing, the classification is incomplete.

The regulation defines several types of taxpayer identifying numbers, including social security numbers, Internal Revenue Service (IRS) individual taxpayer identification numbers, IRS adoption taxpayer identification numbers, and employer identification numbers, according to Legal Information Institute. A format check confirms the digit structure but does not validate the name and TIN combination. The formats are 000-00-0000 for social security numbers and 00-0000000 for employer identification numbers, according to Legal Information Institute.

When a TIN is missing, the awaiting-TIN rule applies only to specific payment types. For interest and dividend payments and certain payments with respect to readily tradable instruments, the payee may return a properly completed, signed Form W-9 to you with “Applied For” written in Part I, according to Internal Revenue Service. For these payments, the payee must provide a TIN within 60 calendar days from the date you receive the certificate, according to Internal Revenue Service. This exemption is strictly limited. The 60-day exemption from backup withholding does not apply to any payment other than interest, dividends, and certain payments relating to readily tradable instruments, according to Internal Revenue Service. If the vendor is paid for services, a missing TIN requires immediate follow-up rather than a 60-day grace period. Mark the vendor record as missing evidence for service payments if no TIN is present.

The certification section determines whether the payer can rely on the form to avoid backup withholding. The backup withholding rate is 24% for reportable payments, according to Internal Revenue Service. A properly completed and signed Form W-9 can be relied upon to avoid backup withholding to a payee, according to Internal Revenue Service. Check whether a signature is required before treating an unsigned form as incomplete.

Electronic signatures follow specific rules. Where a signature is required, it must be under penalties of perjury, with the perjury statement using the paper Form W-9’s language, according to Internal Revenue Service. For Forms W-9 that are not required to be signed, the electronic system need not provide for an electronic signature or a perjury statement, according to Internal Revenue Service. Distinguish forms required to be signed from forms not required to be signed. For a separate filing task, see the guide to electronic filing signatures.

Foreign persons have different requirements. A foreign person, including a U.S. branch of a foreign person that is treated as a U.S. person under Regulations section 1.1441-1(b)(2)(iv) or a foreign branch of a U.S. financial institution that is a QI, may not provide a Form W-9, according to Internal Revenue Service. If the vendor is a foreign person, do not accept a Form W-9. The certification and signature rules apply only to valid Form W-9 submissions.

Review the certification section for completeness. Check that the perjury statement matches the language of the paper form. Verify that the electronic signature is present if the form requires it. Mark the vendor record as checked if the certification and signature requirements are met. Do not submit the form until the certification and signature requirements are verified.

The following table maps specific review points to the source documents that support them. Each row identifies the publisher and the exact guidance provided in their materials.

A review queue contains 10 vendor forms. A service vendor’s form has a blank TIN. Mark that record as missing evidence and list the missing item for follow-up. Checking the other fields does not resolve the blank TIN or make the awaiting-TIN exception apply.

Open one existing vendor W-9 from your client’s intake file and compare its name, classification, TIN type, and applicable certification against the four checks. List any missing items for the client without submitting anything to the IRS. The W-9 is exchanged only between the contractor and the requesting business — it is not filed with the IRS, according to Paychex. If your client uses the QuickBooks Online contractor profile, you can retrieve the document by clicking on the contractor profile, and then going to documents, according to Intuit. Mark the record as checked if all four fields align with the source documents, or flag it as missing evidence if any field is blank or inconsistent. Keep the document in the client’s vendor file for future reference. If the client’s software does not support this specific download workflow, request the document directly from the vendor. This action isolates the review task from any filing obligation. The review confirms that the business has the correct information for its own records. It does not trigger any government action. Use this step to clear one item from the review queue before moving to the next vendor. Use the client intake checklist to organize the handoff.

Whose name belongs on a disregarded LLC’s W-9?

The owner’s name belongs in the primary name field; use the name-placement check above to review both entries.

How are an SSN and EIN formatted?

An SSN uses 000-00-0000 and an EIN uses 00-0000000, according to Legal Information Institute.

Does an awaiting-TIN certificate give every vendor 60 days?

No; the 60-day period applies only to interest, dividends, and certain payments relating to readily tradable instruments, not any other payment, according to Internal Revenue Service.

Must every electronically submitted W-9 have a signature?

No; an electronic signature and perjury statement are required only where the form must be signed, and otherwise neither is required, according to Internal Revenue Service.

Is the W-9 itself filed with the IRS?

No; keep it in the client’s vendor file as described in today’s review step.