W-9 Contractor Service
Agreement Form
James D.libbin. Extension Economist
In 1983, the rules about how fees paid to independent
contractors are to be reported to the Internal
Revenue Service were changed. The Interest and
Dividend Tax Compliance Act of 1983 requires
independent contractors (e,g.custom operators) to
complete a Form W-9 and give it to the person who
paid him for his services (e.g. a farmer).The payer
must collect a W-9 from each independent contractor
or withhold 20% of the payment for income
taxes. Regardless of whether the W-9 is presented,
the payer must report all such payments on Form
1099 at the close of the calendar year.
Many farmers and ranchers use independent
contractors to harvest crops and for a wide range
of other services. Because of the new rules, farmers
and ranchers must be careful to obtain the appropriate
forms and record payments to avoid problems
with IRS.
To make this job as easy as possible, the form
on the back side of this page was prepared so the
farmer or rancher can get the contractor to supply
the necessary information before he receives final
payment. At the end of the calendar year, all of the
forms completed by the various contractors hired
should be collected and given to your tax preparer
for completion of the Forms 1099.
Do not send these W-9 forms to the IRS, they
need to receive Form 1099, not Form W-9.
A partial listing of W-9 instructions (those likely
to apply to farmers and ranchers) follow. Farmers
and ranchers should take the initiative to get the
form completed.
Purpose of Form
Guide Z-807
FRBMH 10·180
Use Form W-9 to certify the contractor's taxpayer
identification number (TIN).
If the contractor does not have a TIN, write
'Applied For' in the space for the TIN in Part I,
then have the contractor sign it and date it. The
contractor then has 60 days to get a TIN and it
to the payer. During the 60-day period, payments
will not be subject to the 20% backup withholding.
However, if the contractor does not supply this
TIN within 60 days, backup withholding begins
and will continue until the TIN is furnished.
Payees and Payments Exempt from Backup
Withholding
The following lists payees that are exempt from
backup withholding and information reporting.
(1) A corporation
(2) An organization exempt from tax under Section
501(a) or an individual retirement account
(IRA).
(3) The United States or any agency or instrumentality
thereof.
(4) A financial institution.
J 88
Published and ?is tnbu ted In fu rth~rance of the ActS or Congress or :' fay 5 and June JO. 191 .. L by the CoopenUI'"e ExtenSIon Sen"ICe or ' "eo\\
~t ex l co. State L nl \,erslty. Robert L. Gilliland. associa te dean and di rector. and the L"S. Department of .l.. gn culture. coope rati ng. ' "ew \ (exlco
;::'(3Ie L nI \:ers I[Y IS an equal opporturuty employer. All programs are a'"aliable (0 e'"e ryo ne regaraless 01 race. color. religlOn. sex. Jge. hanOll'D.o.
Or nat ional on gm. .
10 ce nts
form W-g
(RoY. July 1984)
Department of the Treasury
Internal Revenue Service
Payer's Request for Taxpayer
Identification Number and Certification
Give This Form
to the Payer.
Middleman. Broker.
or Barter Exchange
I Name as snown on account (If JOint account, list first and Circle tne name of the person or entity wnose number you enter In Part I below )
! 1~A~d~d-re-s-s------------------------------------------------------------------------------------------
'i ! ~C~i-ty-.S~t-at-e-.a-n-d~Z~IP~co-d~e--·------------------------------------------------------------------------------
i
list account number(s)
here ~
I2mD Taxpayer Identification Number-For All Accounts
Enter your taxpayer identification number in
the appropriate box. For most individuals. this
is your social security number. If you do not
have a number. see How to Obtain a TIN.
Note: If the account is in more than one name.
see the chart on page 2 for gUidelines on which
number to gIve the payer.
I Socl.1 socurl.y numbor
OR
Employer identification number
Certification.-Under penalties of perjury. I certify that:
For Payees Exempt From
Backup Withholding (See
Instructions)
(1) The number shown on this form is my correct Taxpayer Identification Number (or I am waiting for a number to be issued to me). and
(2) I am not subject to backup withholding either because I have not been notified by the Internal Revenue Service (IRS) that I am subject
to backup Withhold ing as a result of a failure to report all interest or dividendS. or the IRS has notified me that I am no longer subject to
backup withholding.
Certification Instructions.-You must cross out item (2) above if you have been notified by IRS that you are subject to backup
Withholding because of underreporting interest or dividends on your tax return . However. if after being notified by IRS that you were
subject to backup withholding you received another notification from IRS that you are no longer subject to backup withholding. do not cross
out Item (2). (Also see Certification under Specific Instructions .)
Please I Sign
Here Signature ~ Date ~
**Failure to provide correct taxpayer identffication number will require the payer to
withhold 20% backup withholding from payments.
INDEPENDENT CONTRACTOR SERVI CE AGREEMENT
Paye r: Name -----------------------------------------------------
Address
Clty, State and ZIP Code
Co ntracto r : Name ----------------------------------------.-------------------------
Address
In forma tion :
Service to be provi ded : ----------------------------------------------------
Amoun t and timi ng of payment ------------------------------------------------
**This form was developed by r.Jike Hardin, Oklahoma State University .
NMSU Cooperative Extension Service and Agricultural Experiment Station Publications
