We received a new Form W-9 from a vendor, in response to the “First” B-Notice letter we sent them after the vendor was on our recent B-Notice list from the IRS showing that the taxpayer ID number we used on the last Form 1099-MISC for this vendor didn’t match the vendor name. But we don’t know whether this is an acceptable W-9 because they stamped the name of the company (a partnership) in the box that is supposed to contain the “Signature of U.S. person.” There’s no signature of a real person. Can we rely on this form for purposes of avoiding backup withholding in a B-Notice situation for an incorrect TIN.
Answer from Marianne Couch of COKALA Tax Information Reporting Services:
No, that is not a Form W-9 on which you can rely for purposes of avoiding backup withholding in a B-Notice situation for an incorrect TIN, where you need a signature on the form. For a partnership, the proper person to sign the form is an individual who is a responsible and duly authorized partner, member or officer having knowledge of the partnership’s affairs. As required by the tax regulations and revenue procedure, and explained in IRS Publication 1281 – Backup Withholding for Missing and Incorrect TINs, you must begin backup withholding on payments made to payees who do not return a signed Form W-9 in response to the First “B” Notice, no later than 30 business days after the date of the CP2100/CP2100A Notice or the date you received it (whichever is later).
Marianne Couch, JD Principal, Cokala Tax Information Reporting Solutions, LLC Marianne Couch, JD, of the Cokala Tax Group, is an advisor on U.S. federal and state tax information reporting compliance. She is a frequent lecturer at major tax conferences and the author of numerous published articles and the Master Guide to Form 1099 Compliance. Prior to co-founding the Cokala firm in 2007, she served for many years as Research Director of Balance Consulting, and chaired special training and advisory services provided to large organizations and academic and nonprofit institutions. She was previously the executive director of the National Association of Form 1099 Filers, Inc., and a member of the IRS Information Reporting Program Advisory Committee (IRPAC), where she served as Cha! ir of the IRPAC Subcommittee on Small Business and Self-Employed (SBSE) tax issues.
Thomson Reuters offers a wide-range of educational webcasts on tax information reporting issues. Visit our webcast page to learn more.
Visit www.cokala.com to learn how COKALA Tax Information Reporting can help your organization.