--- title: IRS Drafts Revision to Form W-9 for Taxpayer Identification Number Requests description: The IRS has released a draft Form W-9, Request for Taxpayer Identification Number and Certification, with changes addressing digital asset broker exemptions and reporting by sole proprietorships and disregarded entities. The draft revision, dated January 2026, would update the current revision of the form, dated March 2024. image: https://blog.becpas.com/hubfs/IRS%20Drafts%20Revision%20to%20Form%20W-9%20for%20Taxpayer%20Identification%20Number%20Requests.jpg --- [Twitter ** ](https://www.facebook.com/BrownEdwardsCPAs?utm_source=BE+Website&utm_medium=Website+Icon&utm_campaign=BE+Website+Social+Icon&utm_content=Facebook) [Facebook-f ** ](https://www.linkedin.com/company/brown-edwards/?utm_source=BE+Website&utm_medium=Website+Icon&utm_campaign=BE+Website+Social+Icon&utm_content=LinkedIn) [Linkedin ** ](https://www.youtube.com/channel/UC3ReCSn6AFfdQiCUsH4oopA?utm_source=BE+Website&utm_medium=Website+Icon&utm_campaign=BE+Website+Social+Icon&utm_content=YouTube) [Youtube ** ](https://www.youtube.com/channel/UC3ReCSn6AFfdQiCUsH4oopA?utm_source=BE+Website&utm_medium=Website+Icon&utm_campaign=BE+Website+Social+Icon&utm_content=YouTube) [ Client Portal ](https://becpas.sharefile.com/Authentication/Login) [ Make A Payment ](https://becpas.com/payments/) [ Request Proposal ](https://becpas.com/request-for-proposal/) ![](https://blog.becpas.com/hubfs/IRS%20Drafts%20Revision%20to%20Form%20W-9%20for%20Taxpayer%20Identification%20Number%20Requests.jpg) # IRS Drafts Revision to Form W-9 for Taxpayer Identification Number Requests Published by [ Brown Edwards ](https://blog.becpas.com/author/brown-edwards) on Dec 12, 2025 8:00:01 AM The IRS has released a draft [Form W-9](https://www.irs.gov/pub/irs-dft/fw9--dft.pdf), Request for Taxpayer Identification Number and Certification, with changes addressing digital asset broker exemptions and reporting by sole proprietorships and disregarded entities. The draft revision, dated January 2026, would update the current revision of the form, dated March 2024. ## Digital Assets Part II (Certification) in the draft Form W-9 adds a new checkbox for U.S. digital asset brokers to claim exemption from information reporting.  The IRS states that the new checkbox is intended to facilitate a broker obtaining certification from another broker that the other broker is a U.S. digital asset broker within the meaning of Reg. §1.6045-1(g)(4)(i)(A)(1) (other than a registered investment adviser) that is an exempt recipient under Reg. §1.6045-1(c)(3)(i)(B)(12). The instructions refer to [Notice 2024-56](https://www.irs.gov/pub/irs-drop/n-24-56.pdf) for more information. They further specify that a U.S. digital asset broker claiming exemption from information reporting must sign for digital asset sales effected on or after January 1, 2025. The instructions also add a new exempt payee code for line 4. New Code 14 applies for a payee in a transaction involving digital assets that is exempt from backup withholding under [Notice 2025-33](https://www.irs.gov/pub/irs-drop/n-25-33.pdf) through calendar year 2026; for later years, the IRS refers taxpayers to Reg. §31.3406(b)(3)-2. ## Sole Proprietors and Disregarded Entities The draft form specifies that sole proprietors must enter their social security number (SSN), not their employer identification number (EIN). The 2024 revision of the form permits sole proprietors to enter either their SSN or EIN.  The draft form further clarifies not to enter the EIN of a disregarded entity. The instructions state that a single member limited liability company (LLC) that is disregarded as an entity separate from its owner must enter the owner’s taxpayer identification number (TIN). They add that if the direct owner of the entity is also a disregarded entity, then the taxpayer should enter the first owner that is not disregarded for federal tax purposes. ## **Insights** The draft Form W-9 (Rev. Jan 2026) serves as a timely reminder that tax documentation is continually evolving. As digital assets become increasingly embedded in IRS reporting and scrutiny intensifies around entity classification and TIN matching, organizations should revisit their onboarding workflows, enhance validation controls, and proactively communicate with clients and partners. In parallel, payors should collaborate with tax counsel to assess potential risks or exposures and document a good faith methodology to mitigate noncompliance. Monitoring for the final form release and any IRS clarifications will be essential for staying ahead of regulatory developments. Tags: [Tax](https://blog.becpas.com/tag/tax) [Back to Blog](https://blog.becpas.com) ## Related Articles ## [IRS Form W-9 Revision Adds New Reporting Line on Foreign Partners and Beneficiaries](https://blog.becpas.com/irs-form-w-9-revision-adds-new-reporting-line-on-foreign-partners-and-beneficiaries) The IRS in March released a final 2024 revision of Form W-9, “Request for Taxpayer Identification... [Read More ](https://blog.becpas.com/irs-form-w-9-revision-adds-new-reporting-line-on-foreign-partners-and-beneficiaries) ## [Changes to the 2023 Form 5500](https://blog.becpas.com/changes-to-the-2023-form-5500) Changes to the 2023 Form 5500 The Department of Labor (DOL) released the final changes to Form 5500... 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