Instructions for the Requester of IRS Form W-9 - Request for Taxpayer Identification Number and Certification

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Instructions for the
Department of the Treasury
Internal Revenue Service
Requester of Form W-9
(Rev. October 2018)
Request for Taxpayer Identification Number
and Certification
Section references are to the Internal Revenue Code unless
partnership's effectively connected income. For more
otherwise noted.
information, see Regulations section 1.1446-1.
Future Developments
A participating foreign financial institution (PFFI) should
request Form W-9 from an account holder that is a U.S. person.
If an account is jointly held, the PFFI should request a Form W-9
For the latest developments related to Form W-9 and its
from each holder that is a U.S. person.
instructions, such as legislation enacted after they were
published, go to IRS.gov/FormW9.
Advise foreign persons to use the appropriate Form W-8 or
Form 8233, Exemption From Withholding on Compensation for
What’s New
Independent (and Certain Dependent) Personal Services of a
Nonresident Alien Individual. See Pub. 515, Withholding of Tax
Backup withholding rate. The backup withholding rate is 24%
on Nonresident Aliens and Foreign Entities, for more information
for reportable payments.
and a list of the W-8 forms.
Electronic Submission of Forms W-9
Reminders
Requesters may establish a system for payees and payees'
FATCA and backup withholding exemptions. FATCA
agents to submit Forms W-9 electronically, including by fax. A
requires a participating foreign financial institution to report all
requester is anyone required to file an information return. A
U.S. account holders that are specified U.S. persons. Form W-9
payee is anyone required to provide a taxpayer identification
has an Exemptions box on the front of the form that includes
number (TIN) to the requester.
entry for the Exempt payee code (if any) and Exemption from
Payee's agent. A payee's agent can be an investment advisor
FATCA Reporting Code (if any). The references for the
(corporation, partnership, or individual) or an introducing broker.
appropriate codes are in the Exemptions section of Form W-9,
An investment advisor must be registered with the Securities
and in the Payees Exempt From Backup Withholding and
and Exchange Commission (SEC) under the Investment
Payees and Account Holders Exempt From FATCA Reporting
Advisers Act of 1940. The introducing broker is a broker-dealer
sections of these instructions.
that is regulated by the SEC and the National Association of
The Certification section in Part II of Form W-9 includes
Securities Dealers, Inc., and that is not a payer. Except for a
certification relating to FATCA reporting.
broker who acts as a payee's agent for “readily tradable
Backup withholding liability. If you do not collect backup
instruments,” the advisor or broker must show in writing to the
payer that the payee authorized the advisor or broker to transmit
withholding from affected payees as required, you may become
the Form W-9 to the payer.
liable for any uncollected amount.
Electronic system. Generally, the electronic system must:
TIN matching e-services. The IRS website offers TIN
Ensure the information received is the information sent, and
Matching e-services for certain payers to validate name and TIN
document all occasions of user access that result in the
combinations. See
Taxpayer Identification Number (TIN)
Matching, later.
submission;
Make reasonably certain that the person accessing the
How Do I Know When To Use
system and submitting the form is the person identified on Form
Form W-9?
W-9, the investment advisor, or the introducing broker;
Provide the same information as the paper Form W-9;
Use Form W-9 to request the taxpayer identification number
Be able to supply a hard copy of the electronic Form W-9 if
(TIN) of a U.S. person (including a resident alien) and to request
the Internal Revenue Service requests it; and
certain certifications and claims for exemption. (See Purpose of
Require as the final entry in the submission an electronic
Form on Form W-9.) Withholding agents may require signed
signature by the payee whose name is on Form W-9 that
Forms W-9 from U.S. exempt recipients to overcome a
authenticates and verifies the submission. The electronic
presumption of foreign status. For federal tax purposes, a U.S.
signature must be under penalties of perjury and the perjury
person includes but is not limited to:
statement must contain the language of the paper Form W-9.
An individual who is a U.S. citizen or U.S. resident alien;
For Forms W-9 that are not required to be signed, the
A partnership, corporation, company, or association created
electronic system need not provide for an electronic
or organized in the United States or under the laws of the United
TIP
signature or a perjury statement.
States;
Any estate (other than a foreign estate); or
For more details, see the following.
A domestic trust (as defined in Regulations section
Announcement 98-27, which is on page 30 of Internal
301.7701-7).
Revenue Bulletin 1998-15 at IRS.gov/pub/irs-irbs/irb98-15.pdf.
A partnership may require a signed Form W-9 from its U.S.
Announcement 2001-91, which is on page 221 of Internal
partners to overcome a presumption of foreign status and to
Revenue Bulletin 2001-36 at IRS.gov/pub/irs-irbs/irb01-36.pdf.
avoid withholding on the partner's allocable share of the
Sep 25, 2018
Cat. No. 20479P
Instructions for the
Department of the Treasury
Internal Revenue Service
Requester of Form W-9
(Rev. October 2018)
Request for Taxpayer Identification Number
and Certification
Section references are to the Internal Revenue Code unless
partnership's effectively connected income. For more
otherwise noted.
information, see Regulations section 1.1446-1.
Future Developments
A participating foreign financial institution (PFFI) should
request Form W-9 from an account holder that is a U.S. person.
If an account is jointly held, the PFFI should request a Form W-9
For the latest developments related to Form W-9 and its
from each holder that is a U.S. person.
instructions, such as legislation enacted after they were
published, go to IRS.gov/FormW9.
Advise foreign persons to use the appropriate Form W-8 or
Form 8233, Exemption From Withholding on Compensation for
What’s New
Independent (and Certain Dependent) Personal Services of a
Nonresident Alien Individual. See Pub. 515, Withholding of Tax
Backup withholding rate. The backup withholding rate is 24%
on Nonresident Aliens and Foreign Entities, for more information
for reportable payments.
and a list of the W-8 forms.
Electronic Submission of Forms W-9
Reminders
Requesters may establish a system for payees and payees'
FATCA and backup withholding exemptions. FATCA
agents to submit Forms W-9 electronically, including by fax. A
requires a participating foreign financial institution to report all
requester is anyone required to file an information return. A
U.S. account holders that are specified U.S. persons. Form W-9
payee is anyone required to provide a taxpayer identification
has an Exemptions box on the front of the form that includes
number (TIN) to the requester.
entry for the Exempt payee code (if any) and Exemption from
Payee's agent. A payee's agent can be an investment advisor
FATCA Reporting Code (if any). The references for the
(corporation, partnership, or individual) or an introducing broker.
appropriate codes are in the Exemptions section of Form W-9,
An investment advisor must be registered with the Securities
and in the Payees Exempt From Backup Withholding and
and Exchange Commission (SEC) under the Investment
Payees and Account Holders Exempt From FATCA Reporting
Advisers Act of 1940. The introducing broker is a broker-dealer
sections of these instructions.
that is regulated by the SEC and the National Association of
The Certification section in Part II of Form W-9 includes
Securities Dealers, Inc., and that is not a payer. Except for a
certification relating to FATCA reporting.
broker who acts as a payee's agent for “readily tradable
Backup withholding liability. If you do not collect backup
instruments,” the advisor or broker must show in writing to the
payer that the payee authorized the advisor or broker to transmit
withholding from affected payees as required, you may become
the Form W-9 to the payer.
liable for any uncollected amount.
Electronic system. Generally, the electronic system must:
TIN matching e-services. The IRS website offers TIN
Ensure the information received is the information sent, and
Matching e-services for certain payers to validate name and TIN
document all occasions of user access that result in the
combinations. See
Taxpayer Identification Number (TIN)
Matching, later.
submission;
Make reasonably certain that the person accessing the
How Do I Know When To Use
system and submitting the form is the person identified on Form
Form W-9?
W-9, the investment advisor, or the introducing broker;
Provide the same information as the paper Form W-9;
Use Form W-9 to request the taxpayer identification number
Be able to supply a hard copy of the electronic Form W-9 if
(TIN) of a U.S. person (including a resident alien) and to request
the Internal Revenue Service requests it; and
certain certifications and claims for exemption. (See Purpose of
Require as the final entry in the submission an electronic
Form on Form W-9.) Withholding agents may require signed
signature by the payee whose name is on Form W-9 that
Forms W-9 from U.S. exempt recipients to overcome a
authenticates and verifies the submission. The electronic
presumption of foreign status. For federal tax purposes, a U.S.
signature must be under penalties of perjury and the perjury
person includes but is not limited to:
statement must contain the language of the paper Form W-9.
An individual who is a U.S. citizen or U.S. resident alien;
For Forms W-9 that are not required to be signed, the
A partnership, corporation, company, or association created
electronic system need not provide for an electronic
or organized in the United States or under the laws of the United
TIP
signature or a perjury statement.
States;
Any estate (other than a foreign estate); or
For more details, see the following.
A domestic trust (as defined in Regulations section
Announcement 98-27, which is on page 30 of Internal
301.7701-7).
Revenue Bulletin 1998-15 at IRS.gov/pub/irs-irbs/irb98-15.pdf.
A partnership may require a signed Form W-9 from its U.S.
Announcement 2001-91, which is on page 221 of Internal
partners to overcome a presumption of foreign status and to
Revenue Bulletin 2001-36 at IRS.gov/pub/irs-irbs/irb01-36.pdf.
avoid withholding on the partner's allocable share of the
Sep 25, 2018
Cat. No. 20479P
Individual Taxpayer Identification
“The Internal Revenue Service does not require your consent
to any provision of this document other than the certifications
Number (ITIN)
required to avoid backup withholding.”
Form W-9 (or an acceptable substitute) is used by persons
If you use a substitute form, you are required to provide the
required to file information returns with the IRS to get the payee's
Form W-9 instructions to the payee only if he or she requests
(or other person's) correct name and TIN. For individuals, the
them. However, if the IRS has notified the payee that backup
TIN is generally a social security number (SSN).
withholding applies, then you must instruct the payee to strike
out the language in the certification that relates to
However, in some cases, individuals who become U.S.
underreporting. This instruction can be given orally or in writing.
resident aliens for federal tax purposes are not eligible to obtain
See item 2 of the Certification on Form W-9. You can replace
an SSN. This includes certain resident aliens who must receive
“defined below” with “defined in the instructions” in item 3 of the
information returns but who cannot obtain an SSN.
Certification on Form W-9 when the instructions will not be
These individuals must apply for an ITIN on Form W-7,
provided to the payee except upon request. For more
Application for IRS Individual Taxpayer Identification Number,
information, see Rev. Proc. 83-89,1983-2 C.B. 613; amplified by
unless they have an application pending for an SSN. Individuals
Rev. Proc. 96-26, which is on page 22 of Internal Revenue
who have an ITIN must provide it on Form W-9.
Bulletin 1996-8 at IRS.gov/pub/irs-irbs/irb96-08.pdf.
TIN Applied For
Note. ITINs that haven’t been included on a U.S. federal tax
return at least once in the last 3 consecutive tax years will expire.
For interest and dividend payments and certain payments with
Expired ITINs must be renewed in order to avoid delays in
respect to readily tradable instruments, the payee may return a
processing the ITIN holder’s tax return. If the IRS deactivates the
properly completed, signed Form W-9 to you with “Applied For”
ITIN because it has expired, the ITIN may still be used on Form
written in Part I. This is an “awaiting-TIN” certificate. The payee
W-9. However, the ITIN holder will have to apply to renew the
has 60 calendar days, from the date you receive this certificate,
deactivated ITIN if there is a need to file a tax return. For more
to provide a TIN. If you do not receive the payee's TIN at that
information, see the Instructions for Form W-7.
time, you must begin backup withholding on payments.
Substitute Form W-9
Reserve rule. You must backup withhold on any reportable
payments made during the 60-day period if a payee withdraws
You may develop and use your own Form W-9 (a substitute
more than $500 at one time, unless the payee reserves an
Form W-9) if its content is substantially similar to the official IRS
amount equal to the current year's backup withholding rate on all
Form W-9 and it satisfies certain certification requirements.
reportable payments made to the account.
You may incorporate a substitute Form W-9 into other
Alternative rule. You also may elect to backup withhold during
business forms you customarily use, such as account signature
this 60-day period, after a 7-day grace period, under one of the
cards. However, the certifications on the substitute Form W-9
two alternative rules discussed below.
must clearly state (as shown on the official Form W-9) that under
Option 1. Backup withhold on any reportable payments if the
penalties of perjury:
payee makes a withdrawal from the account after the close of 7
1. The payee's TIN is correct,
business days after you receive the awaiting-TIN certificate.
2. The payee is not subject to backup withholding due to
Treat as reportable payments all cash withdrawals in an amount
failure to report interest and dividend income,
up to the reportable payments made from the day after you
receive the awaiting-TIN certificate to the day of withdrawal.
3. The payee is a U.S. person, and
Option 2. Backup withhold on any reportable payments
4. The FATCA code entered on this form (if any) indicating
made to the payee's account, regardless of whether the payee
that the payee is exempt from FATCA reporting is correct.
makes any withdrawals, beginning no later than 7 business days
You may provide certification instructions on a substitute
after you receive the awaiting-TIN certificate.
Form W-9 in a manner similar to the official form. If you are not
The 60-day exemption from backup withholding does
collecting a FATCA exemption code by omitting that field from
not apply to any payment other than interest, dividends,
!
the substitute Form W-9 (see
Payees and Account Holders
and certain payments relating to readily tradable
Exempt From FATCA
Reporting, later), you may notify the payee
CAUTION
instruments. Any other reportable payment, such as
that item 4 does not apply.
nonemployee compensation, is subject to backup withholding
You may not:
immediately, even if the payee has applied for and is awaiting a
TIN.
1. Use a substitute Form W-9 that requires the payee, by
signing, to agree to provisions unrelated to the required
Even if the payee gives you an awaiting-TIN certificate, you must
certifications, or
backup withhold on reportable interest and dividend payments if
2. Imply that a payee may be subject to backup withholding
the payee does not certify, under penalties of perjury, that the
unless the payee agrees to provisions on the substitute form that
payee is not subject to backup withholding.
are unrelated to the required certifications.
If you do not collect backup withholding from affected payees as
A substitute Form W-9 that contains a separate signature line
required, you may become liable for any uncollected amount.
just for the certifications satisfies the requirement that the
certifications be clearly stated.
Payees Exempt From Backup
If a single signature line is used for the required certifications
Withholding
and other provisions, the certifications must be highlighted,
boxed, printed in bold-face type, or presented in some other
The following payees are exempt from backup withholding with
manner that causes the language to stand out from all other
respect to the payments below, and should enter the
information contained on the substitute form. Additionally, the
corresponding exempt payee code on Form W-9. You may rely
following statement must be presented to stand out in the same
on the payee’s claim of exemption unless you have actual
manner as described above and must appear immediately
knowledge that the exempt payee code and/or classification
above the single signature line:
selected are not valid, or if they are inconsistent with each other.
-2-
Instr. for Req. of Form W-9 (Rev. 10-2018)
Payments Exempt From Backup
In that case, you may rely on the Form W-9 for purposes of
obtaining the payee’s TIN, but you must treat the payee as
Withholding
non-exempt. If the payee failed to enter an exempt payee code,
but the classification selected indicates that the payee is
Payments that are not subject to information reporting also are
exempt, you may accept the classification and treat the payee as
not subject to backup withholding. For details, see sections
exempt unless you have actual knowledge that the classification
6041, 6041A, 6042, 6044, 6045, 6049, 6050A, 6050N, and
is not valid.
6050W and their regulations. The following payments generally
are exempt from backup withholding.
If the payee is not exempt, you are required to backup
withhold on reportable payments if the payee does not provide a
Dividends and patronage dividends.
TIN in the manner required or does not sign the certification, if
Payments to nonresident aliens subject to withholding under
required.
section 1441.
1. An organization exempt from tax under
Payments to partnerships not engaged in a trade or business
in the United States and that have at least one nonresident alien
section 501(a), any IRA, or a custodial account under section
403(b)(7) if the account satisfies the requirements of section
partner.
401(f)(2);
Payments of patronage dividends not paid in money.
Payments made by certain foreign organizations.
2. The United States or any of its agencies or
Section 404(k) distributions made by an ESOP.
instrumentalities;
Interest payments.
3. A state, the District of Columbia, a U.S. commonwealth or
Payments of interest on obligations issued by individuals.
possession, or any of their political subdivisions, agencies, or
However, if you pay $600 or more of interest in the course of
instrumentalities;
your trade or business to a payee, you must report the payment.
4. A foreign government or any of its political subdivisions,
Backup withholding applies to the reportable payment if the
agencies, or instrumentalities;
payee has not provided a TIN or has provided an incorrect TIN.
5. A corporation;
Payments described in section 6049(b)(5) to nonresident
6. A dealer in securities or commodities required to register
aliens.
in the United States, the District of Columbia, or a U.S.
Payments on tax-free covenant bonds under
commonwealth or possession;
section 1451.
Payments made by certain foreign organizations.
7. A futures commission merchant registered with the
Mortgage or student loan interest paid to you.
Commodity Futures Trading Commission;
Other types of payment.
8. A real estate investment trust;
Wages.
9. An entity registered at all times during the tax year under
Distributions from a pension, annuity, profit-sharing or stock
the Investment Company Act of 1940;
bonus plan, any IRA, an owner-employee plan, or other deferred
10. A common trust fund operated by a bank under
compensation plan.
section 584(a);
Distributions from a medical or health savings account and
11. A financial institution;
long-term care benefits.
Certain surrenders of life insurance contracts.
12. A middleman known in the investment community as a
Distribution from qualified tuition programs or
nominee or custodian; or
Coverdell ESAs.
13. A trust exempt from tax under section 664 or described in
Gambling winnings if regular gambling winnings withholding is
section 4947.
required under section 3402(q). However, if regular gambling
winnings withholding is not required under section 3402(q),
The following types of payments are exempt from backup
backup withholding applies if the payee fails to furnish a TIN.
withholding as indicated for payees listed in 1 through 13 above.
Real estate transactions reportable under
Interest and dividend payments. All listed payees are exempt
section 6045(e).
except the payee in item 7.
Cancelled debts reportable under section 6050P.
Fish purchases for cash reportable under
Broker transactions. All payees listed in items 1 through 4 and
section 6050R.
6 through 11 are exempt. Also, C corporations are exempt. A
person registered under the Investment Advisers Act of 1940
Payees and Account Holders Exempt
who regularly acts as a broker also is exempt.
From FATCA Reporting
Barter exchange transactions and patronage dividends.
Only payees listed in items 1 through 4 are exempt.
Reporting under chapter 4 (FATCA) with respect to U.S. persons
generally applies only to foreign financial institutions (FFI)
Payments reportable under sections 6041 and 6041A.
(including a branch of a U.S. financial institution that is treated as
Payees listed in items 1 through 5 generally are exempt.
an FFI under an applicable intergovernmental agreement (IGA)).
However, the following payments made to a corporation and
Thus, for example, a U.S. financial institution maintaining an
reportable on Form 1099-MISC, Miscellaneous Income, are not
account in the United States does not need to collect an
exempt from backup withholding.
exemption code for FATCA reporting. If you are providing a
Medical and health care payments.
Form W-9, you may pre-populate the FATCA exemption code
Attorneys' fees (also gross proceeds paid to an attorney,
with "Not Applicable," "N/A," or a similar indication that an
reportable under section 6045(f)).
exemption from FATCA reporting does not apply. Any payee that
Payments for services paid by a federal executive agency.
provides such a form, however, cannot be treated as exempt
(See Rev. Rul. 2003-66, which is on page 1115 of Internal
from FATCA reporting. For details on the FATCA reporting
Revenue Bulletin 2003-26 at IRS.gov/pub/irs-irbs/irb03-26.pdf.)
requirements, including specific information regarding which
financial institutions are required to report, see sections 1471 to
Payments made in settlement of payment card or third par-
1474 and related regulations. See Regulations section
ty network transactions. Only payees listed in items 1 through
1.1471-3(d)(2) for when an FFI may rely on documentary
4 are exempt.
-3-
Instr. for Req. of Form W-9 (Rev. 10-2018)
evidence to treat a U.S. person as other than a specified U.S.
If any one of the joint payees who has not established foreign
person and see Regulations section 1.1471-3(f)(3) for when an
status gives you a TIN, use that number for purposes of backup
FFI may presume a U.S. person as other than a specified U.S.
withholding and information reporting.
person.
For more information on foreign payees, see the Instructions
If you receive a Form W-9 with a FATCA exemption code and
for the Requester of Forms W-8BEN, W-8BEN-E, W-8ECI,
you know or have reason to know the person is a specified U.S.
W-8EXP, and W-8IMY.
person, you may not rely on the Form W-9 to treat the person as
Names and TINs To Use
exempt from FATCA reporting. However, you may still rely on an
otherwise completed Form W-9 to treat a person as a specified
for Information Reporting
U.S. person. An exemption from FATCA reporting (or lack
Show the full name and address as provided on Form W-9 on
thereof) does not affect backup withholding as described earlier
the information return filed with the IRS and on the copy
in these instructions. The following are not specified U.S.
furnished to the payee. If the payee has marked their address
persons and are thus exempt from FATCA reporting.
“NEW”, you should update your records. If you made payments
A. An organization exempt from tax under section 501(a), or
to more than one payee or the account is in more than one
any individual retirement plan as defined in section 7701(a)(37);
name, enter on the first name line of the information return only
the name of the payee whose TIN is shown on Form W-9. You
B. The United States or any of its agencies or
may show the names of any other individual payees in the area
instrumentalities;
below the first name line on the information return. Forms W-9
C. A state, the District of Columbia, a U.S. commonwealth or
showing an ITIN must have the name exactly as shown on
possession, or any of their political subdivisions, agencies, or
line 1a of the Form W-7 application. If you are a PFFI reporting a
instrumentalities;
U.S. account on Form 8966, FATCA Report, and the account is
jointly held by U.S. persons, file a separate Form 8966 for each
D. A corporation the stock of which is regularly traded on one
holder.
or more established securities markets, as described in
Regulations 1.1472-1(c)(1)(i);
For more information on the names and TINs to use for
information reporting, see section J of the General
E. A corporation that is a member of the same expanded
TIP
Instructions for Certain Information Returns.
affiliated group as a corporation described in Regulations
1.1472-1(c)(1)(i);
Notices From the IRS
F. A dealer in securities, commodities, or derivative financial
The IRS will send you a notice if the payee's name and TIN on
instruments (including notional principal contracts, futures,
the information return you filed do not match the IRS's records.
forwards, and options) that is registered as such under the laws
(See Taxpayer Identification Number (TIN) Matching, next.) If
of the United States or any State;
you receive a backup withholding notice, you may have to send
G. A real estate investment trust;
a “B” notice to the payee to solicit another TIN. Pub. 1281,
Backup Withholding for Missing and Incorrect Name/TIN(s),
H. A regulated investment company as defined in section
contains copies of the two types of “B” notices. If you receive a
851 or an entity registered at all times during the tax year under
penalty notice, you also may have to send a solicitation to the
the Investment Company Act of 1940;
payee. See Pub. 1586, Reasonable Cause Regulations and
I. A common trust fund as defined in section 584(a);
Requirements for Missing and Incorrect Name/TINs.
J. A bank as defined in section 581;
Taxpayer Identification Number (TIN)
K. A broker;
Matching
L. A trust exempt from tax under section 664 or described in
TIN Matching allows a payer or authorized agent who is required
section 4947; or
to file Forms 1099-B, DIV, INT, K, MISC, OID, and/or PATR to
M. A tax-exempt trust under a section 403(b) plan or section
match TIN and name combinations with IRS records before
457(g) plan.
submitting the forms to the IRS. TIN Matching is one of the
e-services products that is offered and is accessible through the
Joint Foreign Payees
IRS website. Go to IRS.gov and enter “e-services” in the search
box. It is anticipated that payers who validate the TIN and name
If the first payee listed on an account gives you a
combinations before filing information returns will receive fewer
Form W-8 or a similar statement signed under penalties of
backup withholding (CP2100) notices and penalty notices.
perjury, backup withholding applies unless:
Additional Information
1. Every joint payee provides the statement regarding
foreign status, or
For more information on backup withholding, see Pub. 1281.
2. Any one of the joint payees who has not established
foreign status gives you a TIN.
-4-
Instr. for Req. of Form W-9 (Rev. 10-2018)

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