TaxBandits Knowledge Base

What are the new changes in the IRS W-9 Form for 2024?

The IRS released a draft version of the W-9 Form, Request for Taxpayer Identification Number and Certification, in November 2023. This version included a new reporting requirement for flow-through entities. In March 2024, the IRS released its latest version of Form W-9.

The original Line 3—Federal Tax Classification has now been split into two sections, Line 3a and Line 3b.

• Line 3a on the Form W-9 now clarifies how to correctly complete the form for a Limited Liability Company (LLC). An LLC that is a disregarded entity should check the appropriate box for its owner's tax classification. Otherwise, for an LLC that is not a disregarded entity, line 3a has a single box to check. It has an entry space available to enter the proper tax classification as a C corporation, S corporation, or Partnership (C, S, P). This clarification addresses how an LLC should complete the W-9 Form properly. Adding this note does not change the process of completing the form but emphasizes the distinction for LLCs, enhancing clarity for filers.

        

• Line 3b has been added to the Form W-9 for 2024. Line 3b is for flow-through entities. A flow-through entity must complete this line to indicate the presence of direct or indirect foreign partners, owners, or beneficiaries when it submits Form W-9 to another entity with an ownership interest. This change aims to furnish the flow-through entity with details about the status of its indirect foreign partners, owners, or beneficiaries, enabling it to fulfill any relevant reporting obligations effectively.