In one sentence
The IRS form by which a party certifies its taxpayer identification number, collected for tax reporting.
The longer version
W-9s capture the taxpayer IDs needed for information reporting on interest and other payments. Routine, but required, and part of the collected file.
Missing W-9s create reporting headaches later, so they are gathered with the other party documentation.
Common questions
- Why does a lender collect a W-9?
- To obtain the borrower's taxpayer identification number for IRS information reporting and to establish exemption from backup withholding.
- Who signs the W-9 in a commercial loan?
- An authorized signer completes it. The borrowing entity generally uses its own name and taxpayer identification number, but a single-member LLC treated as a disregarded entity generally uses its tax owner's name and taxpayer identification number rather than the LLC's own EIN.
- Is a W-9 required at every closing?
- It is a routine closing deliverable for most lenders, collected with the other borrower and entity documents.
Keep reading
- The due diligence checklist, built to be runChecklists as systems, not documents.
- The commercial loan closing checklistWhat goes on the list and who owns each line.
- The post-closing audit trailWhat examiners ask for and how to have it ready.
- Commercial loan softwareWhere this sits in the lending stack.