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The notable change in the October 2023 revision of Form W-9 is the addition of a new line 3b. Flow-through entities, which pass their income through to their owners or partners for tax purposes, are now required to complete this line if they have direct or indirect foreign partners, owners, or beneficiaries.
An IRS form W-9, or ?Request for Taxpayer Identification Number and Certification,? is a document used to obtain the legal name and tax identification number (TIN) of an individual or business entity. It is commonly required when making a payment and withholding taxes are not being deducted.
While the form doesn't change that often, it's good practice to request an updated Form W-9 annually, or as you notice a change in vendor information. This process ensures you will have the most up-to-date information. Another tip when receiving W-9 forms is to review them as you receive them.
The draft Form W-9 was released on July 26, 2023, and shows a revision date of October 2023. Once finalized, withholding agents are generally required to accept the current version Form W-9.
Form W-9 Revision Adds New Reporting on Flow-through Entities to Taxpayer Identification Requests. The IRS on July 26 released a draft 2023 revision of Form W-9, ?Request for Taxpayer Identification Number and Certification,? that includes a new reporting line for flowthrough entities like partnerships and trusts.