By Roger Chartier

PRINTW9.com

Part ll - Certification

It starts with "Under penalties of perjury, I certify that:" Those are heavy words so be careful to be very truthful.

The form states that...

1. The number shown on this form is my correct taxpayer Identification number (or I am waiting for a number to be issued to me) and,
   
   
2. I am not subject to backup withholding because (a) I am exempt from backup withholding, or (b) I have not been notified by the IRS that I am subject to backup withholding as a result of a failure to report all interest and dividends on your tax return.

 

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3. For real estate transactions, Item 2 does not apply.

For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN.

See the instructions on W9 Form page 4.

The next part for you to fill in is the grand ending it says,
Sign Here: Signature of U.S. person----> then a long line to sign on with and ending that asks for the date.

That is the end of what must be filled out on the form, but it does have a 3+ page section of instructions that go into more detail than is covered here so be sure to read the instructions to be sure not to make an error on the form.

Important to remember:

Payments that you receive will be subject to backup withholding if:

1. You did not furnish or put your TIN on the Form for your requester.
   
   
2. You do not certify your TIN when required.
   
   
3. The IRS tells the requester that you furnished an incorrect TIN.
   
   
4. The IRS lets you know that you are now subject to backup withholding because you didn't report all of your dividends and interest on your tax return. (For reportable interest, and dividends only) or
   
   
5. You do not certify to the requester that you are not subject to backup withholding under 4 above (for reportable interest and dividend accounts opened after 1983 only).

The next part for you to fill in is the grand ending it says,

Sign Here: Signature of U.S. person -> then a long line to sign on with and ending that asks for the date.

That is the end of what must be filled out on the form, but it does have a 3+ page section of instructions that go into more detail than is covered here.

Be sure to read the instructions to be sure not to make an error on the form.

Also very important to remember:

Payments that you receive will be subject to backup withholding if:

1. You did not furnish or put your TIN on the Form for your requester.
   
   
2. You do not certify your TIN when required.
   
   
3. The IRS tells the requester that you furnished an incorrect TIN.
   
   
4. The IRS lets you know that you are now subject to backup withholding because you didn't report all of your dividends and interest on your tax return. (For reportable interest, and dividends only) or
   
   
5. You do not certify to the requester that you are not subject to backup withholding under 4 above (for reportable interest and dividend accounts opened after 1983 only).

There are penalties.

As of now the fine for failure to furnish a correct TIN is $50.00 unless there is reasonable cause and not willful neglect.

For false information as far as withholding is concerned there is a $500.00 fine for a false statement with no reasonable basis for a no backup withholding.

Criminal penalty for falsifying information. Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment.

Misuse of TINs. If the requester discloses or uses TINs in violation of federal law, the requester may be subject to civil and criminal penalties.

Watch out for Emails from the IRS.

You shouldn't get an email form the IRS as they don't initiate communicate that way.  Our IRS does not ask for personal detailed information through email. The IRS doesn't ask taxpayers for passwords, the PIN numbers, or other secret access information for bank, financial accounts or credit cards.

An email that does this is likely a false, phishing or spam email and the source is trying to get your information for devious purposes.
Do not reply to it. If you are worried, check with the IRS directly to be sure there is no problem.

What name and number to give the requester?

First is Account Type -
Second is Give Name and Social Security Number Of:

1. Individual - The individual
2. Two or more individuals (joint account) - The actual owner of the account or, if combined funds, the first individual on the account 1
3. Custodian account of a minor (Uniform Gift to Minors Act) - The Minor 2
4. a. The usual revocable savings trust (grantor is also trustee) - The grantor-trustee 1
5. b. So-called trust account that is not a legal or valid trust under state law - The actual owner 1
6. Sole proprietorship or disregarded entity owned by an individual - The owner 3
7. Grantor trust filing under Optional Form 1099 Filing Method 1 (see Regulation section 1.671-4(b)(2)(i)(A)) - The grantor*
8. Give the Name and EIN of
9. Disregarded entity not owned by an individual - The Owner
10. A valid trust, estate, or pension trust - Legal entity 4
11. Corporation or LLC electing corporate status on Form 8832 or Form 2553 - The corporation
12. Association, club, religious, charitable, educational, or other tax-exempt organization - The organization
13. Partnership or multi-member LLC - The partnership
14. A broker or registered nominee - The broker or nominee
15. Account with the Department of Agriculture in the name of a public entity (such as a state or local government, school district, or prison) that receives agricultural program payments - The public entity
16. Grantor trust filing under the Form 1041 Filing Method or the Optional Form 1099 Filing Method 2 (see Regulation section 1.671-4(b)(2)(i)(B)) - The Trust

1. List first and circle the name of the person whose number you furnish. If only one person on a joint account has an SSN, that person’s number must be furnished.

2 Circle the minor’s name and furnish the minor’s SSN.

3 You must show your individual name, and you may also enter your business or “DBA” name on the “Business name/disregarded entity” name line. You may use either your SSN or EIN (if you have one), but the IRS encourages you to use your SSN.

4 List first and circle the name of the trust, estate, or pension trust. (Do not furnish the TIN of the personal representative or trustee unless the legal entity itself is not designated in the account title.) Also see Special rules for partnerships on page 1.

*Note. Grantor also must provide a Form W-9 to trustee of trust.

Read the downloaded W-9 instructions pages 2, 3, 4 of the W-9 Instructions Section.