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With 50 states, the federal government in the United States of America needs to ensure there is a proper collection of tax to ensure the country’s needs are well budgeted for. This is what the country uses to plan its budget for any financial year, allowing for the allocation of money to different sectors in the country. For this to be achieved, the Internal Revenue Service (IRS) always has a tax collection target to hit to ensure smooth running. As such, every state in the US is required by federal law to collect tax on behalf of the IRS. The New York City state is required to Request for Taxpayer Identification Number to report on any payments made to you or your organization. A taxpayer identification number, is what is used to identify you to the IRS and keep an up to date report of your tax payments to the IRS. It could either be your Social Security Number (SSN) or your Employer Identification Number (EIN).
The New York City state will require a filled out NYS W9 forms from you before they can do business with you. The NYS W9 form is a substitute of the W9 form that is used in the state of New York City to get your personal information. The NYS W9 form is used to certify your taxpayer identification number and ascertain its accuracy before the state can make any payments to you for services offered and to avoid backup withholding. The New York City state is required by law to withhold 28% of tax and pay it to the IRS in compliance with the federal laws. The NYS W9 form enables the state to keep a record of the payments made to you and report it to the IRS. If you don’t have the NYS W9 form, you can download and fill one from the Office of the State Comptroller for the New York City state’s website.
As a state, they are bound to transact businesses with individuals who are foreigners, but do not qualify for the Social Security Number (SSN) but have a federal tax reporting obligation. In such an instance, the individual will be required to apply for an Individual Taxpayer Identification Number (ITIN) and fill out form W8 which can be downloaded from the IRS website. The IRS form W8 will be used to certify your ITIN as a vendor or payee and should be accompanied by a filled out NYS W9 form. The NYS W9 form has five different parts that you will be required to fill. The first part will require you to fill out your legal business name or any other name that you are doing business as. Additionally, on the first part, you will need to tick the entity type; are you a sole proprietor, partnership, LLC and other; the entity type has 12 different boxes and you are only allowed to tick one.
Part 2 of the form will require you to fill out your taxpayer identification number while part three will require you to fill out your address. Part 4 is will see you fill out whether you are exempted from backup withholding and sign to confirm that the information filled out in all other section is true to the best of your knowledge. The last section, part 5, will contain contact information about the person authorized to represent you, the vendor. All sections must be filled out before the form is submitted to the New York State Office of the Comptroller. The substitute NYS W9 form is the only acceptable form that is supposed to be submitted to the Office of the Comptroller of the New York State. IRS W9 form will not be accepted.