Why You May Need the 2023 W-9 Form in 2025
In 2025, you may still need to use the 2023 W-9 form to handle overdue payments or complete late tax filings for 2023. Knowing when to use the older version helps maintain compliance and ensures proper recordkeeping.
While the 2024 W-9 can be used for 2023 tax purposes, using the 2023 version ensures consistency and simplifies recordkeeping for that tax year.
Make Late Payments for Previous Tax Year Services
If you owe a contractor or self-employed individual for 2023 services but didn’t receive an invoice, the IRS W-9 tax form for 2023 helps collect their tax details. Once they share their details, you can make the payment and prepare their information return.
For example, if you hired a freelancer for work in October 2023 but only received a $1,000 bill in early 2025, you may realize you never got a W-9 from them. To resolve this issue, request a 2023 W-9 before making the payment. Since they earned $600 or more, you’ll also need to prepare a 2023 1099-NEC. This ensures proper payment and compliance with IRS reporting requirements for the 2023 tax year.
Should the W-9 Match the Calendar Year of the Services Rendered?
The IRS allows using the latest version of the W-9 for previous tax years, but you can use the 2023 edition for consistency when filing or keeping records for the 2023 tax year.
Create a 2023 Information Return
If you paid a contractor in 2023 but didn’t submit their information return, the missing 2023 W-9 can make it difficult to complete your tax reporting. While it’s ideal to collect W-9s before making payments, sometimes they are overlooked.
In such cases, you can ask the contractor to fill out a 2023 W-9, which will provide the necessary tax details to prepare the 2023 information return and file any late returns.
Remember, a contractor can fill out a 2024 W-9 for 2023 tax purposes as long as the details are accurate.
Amend Previous-Year 1099 Forms
A minor error on a contractor’s W-9 can lead to inaccuracies on their 1099 form for a previous tax year. Common mistakes include a transposed TIN, misspelled address, or incorrect business name. If any of these issues occur, you may need to ask the payee to update their W-9 using the relevant form for that year.
For example, imagine you issued a 2023 1099-NEC to report a freelancer’s income but later discovered a mistake in their TIN. To correct the 1099-NEC, you would ask the freelancer to complete a 2023 W-9 to ensure the information is accurate before issuing a corrected return.
Amending 1099-MISCs
You may also need a W-9 form for 2023 to amend a 2023 1099-MISC form.
Compare the 2023 and 2024 W-9 Forms
You might want to compare the 2023 W-9 form and the 2024 W-9 form to determine which one to use. The 2023 W-9 has been in place since 2018 and remains unchanged, allowing self-employed individuals to provide their taxpayer information for reporting purposes.
The 2024 version introduces changes, including a new question for flow-through entities. For example, it requires flow-through entities to indicate whether they have indirect or direct foreign beneficiaries, owners, or partners when they issue the W-9 to other flow-through entities.
The 2023 version is no longer valid for these entities because they won’t be able to disclose this information properly, but contractors can still complete it.
How to Fill Out the 2023 W-9 Form
As a freelancer, independent contractor, or another non-employee, you’re in charge of providing an accurate W-9 to your payer. The details provided in the form end up on any 1099s you receive. If they’re outdated, it can hinder the 1099 reporting process or cause an error.
The 2023 and 2024 W-9 forms are mostly the same in terms of simplicity. The 2024 version includes additional questions for foreign partners and disregarded entities, but both forms are easy to complete. Here’s what you’ll need to include about yourself on the 2023 form:
- name
- business name
- federal tax classification
- address
- account number
- taxpayer identification number
You’ll also need to fill out a certification statement that certifies your:
- provision of an accurate TIN
- exemption from backup withholding
- US citizenship status
- Foreign Account Tax Compliance Act (FATCA) exemption status
It’s essential to update your W-9 if your business details change. That way, you’ll receive an accurate 1099 at year-end and be able to prepare a timely tax return.
Submitting a 2023 W-9 Form
Once you fill out your 2023 W-9 form, you’ll submit it to the payer who requested it. They’ll store this document in their records. Unlike some other IRS tax forms, they will not file it with the IRS. Instead, they’ll use the information on it to complete 2023 information returns.
Avoid 2023 Filing Penalties with Proper W-9s
Accurate W-9 forms are key to smooth tax filing and avoiding unnecessary penalties. By ensuring you have complete and correct W-9 forms, you set your business up for success when filing 1099s and stay ahead of potential issues.
For 2023 returns, the IRS charges a $290 penalty per form for late or incorrect filings. Per the IRS website, intentional errors can result in fines of $580 per form. Keeping thorough records also strengthens your ability to validate tax deductions, like contractor payments, during an audit.
To avoid these issues, payers should collect W-9s from all payees before making payments. If you’re behind, request the forms now to reduce risks and stay compliant with IRS rules.
Legal Considerations
Whether you’re a business owner or a self-employed individual, the 2023 W-9 form plays an important role in tax compliance.
For businesses, requesting a completed W-9 from contractors ensures you have accurate information for preparing 1099 forms at year-end. For contractors, providing an up-to-date W-9 ensures that companies have accurate tax details, preventing any issues with reporting your income.
While the W-9 form is relatively straightforward, tax-related questions can arise. If you’re unsure how to use it or need guidance on a specific situation, consult a tax or legal advisor for personalized advice.
How LegalTemplates Helps
We offer the 2023 W-9 form in our PDF editor, allowing you to conveniently fill in your information as a self-employed individual or business entity. Once completed, you can save and download your form to share with your payer. Repeat this process for every payer you worked for in 2023 or previous years, as the form is valid for tax years dating back to 2018.
Frequently Asked Questions
Is there any risk of using an outdated W-9 form?
Yes, using an outdated W-9 carries risks. If a payee’s tax information changes, such as their TIN, address, or business structure, relying on old details can lead to errors on 1099 forms, IRS penalties, or payment delays. Many businesses request updated W-9s every one to three years to avoid these issues and ensure accurate reporting and compliance.
Does the IRS require businesses to have the latest version of a vendor’s W-9?
No. If your records include older W-9s from self-employed individuals you work with, the IRS won’t penalize you.
However, you should use the current W-9 form for any new self-employed individuals you hire for accurate recordkeeping. You should also request an updated W-9 from flow-through and disregarded entities, as the 2024 version allows them to clarify their statuses.
