W-9 Form

The W-9 form, officially titled Request for Taxpayer Identification Number and Certification, is an Internal Revenue Service document that carriers provide to freight brokers and shippers to supply their tax identification information. The W-9 is used to collect the carrier's legal name, business entity type, address, and Employer Identification Number or Social Security Number for the purpose of issuing 1099-NEC forms that report payments made to the carrier during the tax year.

Collecting a completed W-9 from every carrier is a standard part of the carrier onboarding process and a legal requirement for companies that make payments of $600 or more to non-employee service providers during a calendar year. Without a valid W-9 on file, the paying party may be required to withhold 24 percent of payments as backup withholding and remit the withheld amount to the IRS.

Importance in Carrier Vetting

Beyond its tax reporting purpose, the W-9 serves as a carrier identification verification tool. The legal name and EIN on the W-9 should match the carrier's FMCSA registration, operating authority, and insurance certificates. Discrepancies between these documents can indicate administrative errors or, in some cases, fraudulent carrier operations. Brokers should cross-reference W-9 information with FMCSA records as part of their carrier vetting process.

The W-9 should be updated whenever a carrier changes its legal name, business entity type, or tax identification number. Brokers and shippers should request updated W-9 forms annually as part of their carrier requalification process to ensure that tax reporting information remains current and accurate. Failure to maintain current W-9 records can result in incorrect 1099 reporting and potential IRS penalties for both the paying party and the carrier.