In the United States, tax season has begun, and many people are being forced to organize their money. One of the less well-known documents that taxpayers may need to submit to the IRS to record their income and other financial data is the W-9. The IRS states that your correct Taxpayer Identification Number (TIN) is provided to the individual who must file an information return with the IRS to report using the W-9, which is technically known in the US as the Taxpayer Identification Number and Certification Request.
This could include, for instance, wages received from employment, real estate transactions, mortgage interest, debt forgiveness, or any donations made to the IRS. Keep in mind that it is unlikely that you will be required to submit or deal with W-9s if you are not an independent contractor or business owner.
The IRS has revealed everything you need to know about the W-9 Form for this year
When businesses or individuals hire contractors, they can utilize the W-9 to make sure that everyone knows that the contractor is responsible for paying taxes on their profits. According to the certified W-9, the Internal Revenue Service (IRS) is aware that the contractor has not had any income withheld. A detailed video explaining how to complete this form has been made available by the tax office. It includes advice based on common queries from contractors and enterprises. The minimal income required for a third-party retailer or mobile payment servicer to issue a 1099-K to consumers was reduced by Congress as part of the American Rescue Plan.
You can receive a 1099-K, which serves as a reminder that your revenue has already been reported to the IRS, if you make over $600 annually from your business on websites like Poshmark, Etsy, or eBay. Additionally, the same guidelines will be applicable if your company takes PayPal or Venmo payments. Originally scheduled to take effect last year, the new rule has been delayed in its execution due to problems and holdups by the IRS and the platforms. If you do not get at least two hundred payments totaling more than $20,000 in 2024, you will not be issued a 1099-K. This does not negate the obligation to report this information to the IRS, either.
This is how the IRS will share illegal immigrants’ information
In a court filing late Monday night, the IRS and the Department of Homeland Security agreed to share data to promote the Trump administration’s immigration enforcement goal. As per the deal, U.S. Immigration and Customs Enforcement would provide the names and addresses of undocumented immigrants who are in the country and have final removal orders. These details would then be compared to IRS taxpayer information.
According to the court filing, DHS is legally entitled to request return information about people who are the subject of a criminal investigation, and the IRS is required to comply, as stated in the MOU. The agencies are using this authority following the president’s executive order, according to the real memorandum of agreement that was submitted to the court. Moreover, as the MOU stated, every request will attest that information will only be utilized by ICE officers and staff to prepare for judicial or administrative actions or their investigation, which may result in such proceedings.
To help law enforcement fight illegal immigration, the Internal Revenue Service and Immigration and Customs Enforcement have signed a memorandum of understanding to create a transparent and safe procedure, according to a Treasury official. The MOU is based on Congress-granted authority, respecting the privacy of law-abiding Americans while speeding criminal investigations. According to a spokeswoman, President Trump prioritizes American citizens’ protection after four years of Joe Biden’s illegal alien surge.
Furthermore, the MOU establishes guidelines for agencies to follow, ensuring compliance with IRS privacy protection laws, specifically Section 6103, and the Treasury Department’s commitment to safeguarding the taxpayer data of lawfully abiding individuals. However, Section 6103 has a criminal exemption. Any migrant who has overstayed for more than 90 days will be subject to this exemption as part of the carveout, which calls on the IRS to assist law enforcement in their attempts to capture criminals.
