Does IRS Form W-9 Need to be Signed to be Legal?

Question

I am working on a software application wherein a merchant's W-9 (Request Taxpayer Identification Number) form needs to be transmitted to those who will be paying the merchant. Is there a legal alternative to pasting a JPEG of his signature into the PDF?

Answer 1

The IRS allows electronic transmission of a W-9 with an electronic signature (PIN.) However, the payee has to set up a system for electronic acceptance that meets the IRS' requirements. You would need to determine how to interface to the payee's systems and meet their authentication requirements.
If you're going to fill out an actual w-9, it needs an actual signature, not a stamp or image pasted in.

Answer 2

It's not legal unless signed by your hand. Since anyone can capture and paste a JPEG image, it is NOT legal. You must sign the form by hand and transmit the physical form to the recipient. An advance faxed copy is sufficient to make the first payment but you should hold off for the physical form after the first payment.

Answer 3

No, the W-9 does not need to be signed except under certain circumstances.From the instructions:

Signature requirements. Complete the certification as indicated in items 1
through 5 below.
1. Interest, dividend, and barter exchange accounts opened before 1984
and broker accounts considered active during 1983. You must give your
correct TIN, but you do not have to sign the certification.
2. Interest, dividend, broker, and barter exchange accounts opened after
1983 and broker accounts considered inactive during 1983. You must sign the
certification or backup withholding will apply. If you are subject to backup
withholding and you are merely providing your correct TIN to the requester, you
must cross out item 2 in the certification before signing the form.
3. Real estate transactions. You must sign the certification. You may cross out
item 2 of the certification.
4. Other payments. You must give your correct TIN, but you do not have to sign
the certification unless you have been notified that you have previously given an
incorrect TIN. “Other payments” include payments made in the course of the
requester’s trade or business for rents, royalties, goods (other than bills for
merchandise), medical and health care services (including payments to
corporations), payments to a nonemployee for services, payments made in
settlement of payment card and third party network transactions, payments to
certain fishing boat crew members and fishermen, and gross proceeds paid to
attorneys (including payments to corporations).
5. Mortgage interest paid by you, acquisition or abandonment of secured
property, cancellation of debt, qualified tuition program payments (under
section 529), IRA, Coverdell ESA, Archer MSA or HSA contributions or
distributions, and pension distributions. You must give your correct TIN, but you
do not have to sign the certification.

Answer 4

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