What Happens If You Don't Provide a W-9?

You got a W-9 request from a client and ignored it. Or maybe you're nervous about sharing your SSN and want to refuse. Whatever the reason, not providing a W-9 has real financial consequences — both for you and the person paying you.

The Immediate Consequence: 24% Backup Withholding

If you refuse to provide a W-9 or provide one with an incorrect TIN, the payer is legally required by the IRS to withhold 24% of every payment they make to you. This is called backup withholding.

Here's what that looks like in practice:

The withheld amount isn't lost forever — you can claim it as a credit when you file your tax return. But it means significantly less cash flow throughout the year, which can be devastating for freelancers living payment-to-payment.

Consequences for the Payer (Your Client)

Your client also faces penalties if they don't collect your W-9:

• Failure to file a correct 1099: Up to $310 per form (2026 rates).
• Intentional disregard: $630 per form if the IRS determines they deliberately ignored the requirement.
• No maximum cap: For intentional disregard, there is no ceiling on total penalties.

This is why clients are so persistent about getting your W-9 — they're protecting themselves from IRS penalties.

What Triggers Backup Withholding

Backup withholding doesn't just apply when you refuse to provide a W-9. The IRS can also require it if:

1. You fail to provide a TIN — no SSN or EIN on the W-9.
2. You provide an incorrect TIN — the IRS notifies the payer of a name/TIN mismatch.
3. The IRS notifies the payer that you previously underreported interest or dividends.
4. You fail to certify that you're not subject to backup withholding (Part II of the W-9).

Can You Legally Refuse to Provide a W-9?

Technically, yes — there is no law that forces you to fill out a W-9. However, the practical consequences make refusal a bad idea:

• The client will apply 24% backup withholding on all payments.
• Many clients will simply refuse to work with you or withhold payment entirely until they receive a W-9.
• Platforms like Upwork, Fiverr, and Deel will freeze your account until tax information is provided.
• Refusing a legitimate W-9 request can make you look unprofessional and raise trust concerns.

What If You're Worried About Privacy?

Many people hesitate to provide a W-9 because it contains their SSN. Here are legitimate ways to protect yourself:

• Get an EIN instead: You can apply for a free Employer Identification Number from the IRS and use it on your W-9 instead of your SSN. This is the #1 recommended approach for freelancers with multiple clients. Learn more in our EIN guide for freelancers.
• Use secure transmission: Never email an unencrypted W-9. Use password-protected PDFs, secure portals, or a zero-storage W-9 generator.
• Verify the requester: Before providing a W-9, confirm the request is from a legitimate business that will actually be paying you. W-9 phishing scams do exist.

How to Fix the Situation

If you've been avoiding a W-9 request or had backup withholding applied, here's how to resolve it:

1. Fill out a W-9 immediately — Use our online W-9 generator to create one in under 2 minutes.
2. Send it to your client — Use a secure method (encrypted email, client portal, etc.).
3. Request they stop backup withholding — Once they have a valid W-9, they should stop withholding on future payments.
4. Claim the credit on your tax return — Report backup withholding on Line 25d of Form 1040 to get it refunded.

Frequently Asked Questions

Is a W-9 request a scam?

Legitimate W-9 requests come from businesses that pay you (clients, banks, brokerages). Be suspicious if a W-9 request comes from someone you've never done business with, via text message, or from a personal email address. Verify the requester's identity before sharing your TIN.

Can I get my backup withholding back?

Yes. Report backup withholding on your annual tax return (Form 1040, Line 25d). It will be applied as a credit against your total tax liability, and any excess will be refunded to you.

What if I provided a W-9 but the client never sent a 1099?

If a client paid you $600+ but didn't issue a 1099, you should still report the income on your tax return. Contact the client first to request a corrected filing. If they refuse, you can report the issue to the IRS using Form SS-8 or by calling the IRS directly.

Does backup withholding apply to PayPal/Venmo payments?

Yes. Third-party payment processors are also required to apply backup withholding if you haven't provided valid tax information. PayPal, Venmo, and Stripe will all request your W-9 information and apply withholding if you don't provide it.

Don't let backup withholding eat into your income. Fill out your W-9 in under 2 minutes with our secure online W-9 generator — zero data storage, instant PDF download.