What is form W-9 primarily used for?

Form W-9 is primarily used for requesting a taxpayer identification number (TIN) and obtaining certifications from the individual or business that is providing the information. When a business hires an independent contractor or vendor, the business needs to document the contractor's TIN for tax reporting purposes. The W-9 form captures essential information such as the name, business name (if applicable), TIN, and the type of entity (e.g., individual, corporation, partnership) to facilitate proper reporting of income and fulfilling tax obligations.

Organizations use the information gathered from the W-9 form to issue Form 1099, which reports amounts paid to the independent contractor or vendor. This process ensures compliance with IRS regulations and helps to maintain accurate records for tax reporting and withholding purposes.

The other options, while related to various tax forms and responsibilities, do not accurately define the purpose of Form W-9. For example, claiming exemption from withholding pertains more closely to forms like the W-4 or W-4P, while reporting annual employment taxes is primarily related to forms such as the 940 or 941. Indicating amounts withheld for levy is associated with forms like the IRS Form 668, designed for specific levy situations.