Do W-9 Forms Expire? Here’s When to Request a New Form

Form W-9, Request for Taxpayer Identification Number and Certification, is a document companies use to gather specific data from independent contractors, freelancers, and other vendors. This information, which includes the contractor’s name, address, and Taxpayer Identification Number (TIN), is necessary for the business to fulfill its tax reporting duties.

The details on a W-9 are used to complete information returns, most commonly Form 1099-NEC, Nonemployee Compensation. A business must issue a Form 1099-NEC when it pays a non-employee $600 or more for services during a calendar year. The W-9 ensures the payer has the correct information to report these payments accurately to the contractor and the Internal Revenue Service (IRS).

The Lifespan of a Form W-9

A common point of confusion is whether a Form W-9 has an expiration date. The form itself does not have a set period of validity or a formal expiration date. The IRS does not require businesses to automatically request a new Form W-9 from a vendor on a periodic schedule.

While a previously submitted W-9 remains valid, the IRS does update the form. A revised Form W-9 was released in March 2024, which includes a new Line 3b. This line must be completed by flow-through entities, such as partnerships or trusts, that have foreign partners, owners, or beneficiaries. Although this revision doesn’t invalidate older forms, businesses should use the new version when requesting a W-9 to ensure they are collecting all currently required information.

The principle governing the form’s lifespan is the accuracy of the information it contains. The certification made by the payee when signing the W-9 attests that the provided name and TIN are correct, and this certification remains in effect as long as that information does not change. A business can reasonably rely on a previously obtained W-9 until it is made aware of a change.

While the payer is not required to proactively solicit new forms without cause, it is prudent business practice to have internal policies for record-keeping. Many businesses keep W-9s on file for at least four years, which aligns with general IRS record retention guidelines.

Events Triggering a New Form W-9

The validity of a Form W-9 ceases when the information on it becomes outdated. Several events will invalidate a submitted form and require a business to request a new one.

• A change in the recipient’s legal name. For an individual, this could result from marriage or divorce, while a business might undergo an official rebranding.
• A change in business structure. For example, if a sole proprietor using their Social Security Number decides to form a Limited Liability Company (LLC), they will likely obtain a new Employer Identification Number (EIN).
• A change in the Taxpayer Identification Number itself, even if the business structure remains the same.
• Receiving an IRS notice, such as a CP2100 or CP2100A Notice. This notice means the name and TIN combination on a filed 1099 did not match IRS records, and the business must solicit a new W-9.

Consequences of Using Outdated Information

Relying on an outdated Form W-9 can lead to backup withholding. Backup withholding is not an additional tax but rather a method for the IRS to collect income tax from payments that might otherwise go unreported. When a payer files a Form 1099 with a name and TIN combination that does not match IRS records, the IRS will notify the payer of this discrepancy.

This notification legally obligates the payer to begin withholding tax from future payments to that vendor at a flat rate of 24%. For every payment made to the contractor, the business must deduct 24% and remit it to the IRS. This process continues until the business receives a newly certified Form W-9 from the vendor.

Failing to implement backup withholding when required can expose the business to penalties. The business could become liable for the amount of tax that should have been withheld. This creates a financial incentive for businesses to maintain accurate vendor information and act on any notices from the IRS.