General Instructions For Certain Information Returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, And W-2g)

2006-83, 2006-40 I.R.B. 596, available at

Truncating payee’s TIN on payee statements. Filers

2006-40_IRB/ar12.html.

of information returns are permitted to truncate a payee's

TIN (SSN, ITIN, ATIN, or EIN) on most payee statements.

TINs. TINs are used to associate and verify amounts you

The payee's TIN may not be truncated on Form W2-G.

report to the IRS with corresponding amounts on tax

Where permitted, filers may truncate a payee's TIN on the

returns. Therefore, it is important that you furnish correct

payee statement (including substitute and composite

names, social security numbers (SSNs), individual

substitute statements) furnished to the payee in paper

taxpayer identification numbers (ITINs), employer

form or electronically. Generally, the payee statement is

identification numbers (EINs), or adoption taxpayer

that copy of an information return designated "Copy B" on

identification numbers (ATINs) for recipients on the forms

the form. A "payee" is any person who is required to

sent to the IRS.

receive a copy of the information set forth on an

Only one recipient TIN can be entered on the

information return by the filer of the return. For some

form.

TIP

forms, the term "payee" will refer to beneficiary, borrower,

debtor, insured, participant, payer, policyholder, recipient,

Requesting a recipient's TIN. If the recipient is a U.S.

shareholder, student, or transferor. If a filer truncates a

person (including a U.S. resident alien), the IRS suggests

TIN on Copy B, other copies of the form furnished to the

that you request the recipient complete Form W-9,

payee may also include a truncated number. A filer may

Request for Taxpayer Identification Number and

not truncate a payee's TIN on any forms the filer files with

Certification, or Form W-9S, Request for Student's or

the IRS. A filer's TIN may not be truncated on any form. To

Borrower's Taxpayer Identification Number and

truncate where allowed, replace the first five digits of the

Certification, as appropriate. See the Instructions for the

nine-digit number with asterisks (*) or Xs (for example, an

Requester of Form W-9 for more information on how to

SSN xxx-xx-xxxx would appear on the paper payee

request a TIN.

statement as ***-**-xxxx or XXX-XX-xxxx). See TD 9675,

2014-31 I.R.B. 242, available at

If the recipient is a foreign person, the IRS suggests

that you request the recipient complete the appropriate

2014-31_IRB/ar07.html.

Form W-8. See the Instructions for the Requester of

Electronic submission of Forms W-9. Requesters may

Forms W-8BEN, W-8ECI, W-8EXP, and W-8IMY.

establish a system for payees and payees' agents to

submit Forms W-9 electronically, including by fax. A

U.S. resident aliens who rely on a “saving clause”

of a tax treaty are to complete Form W-9, not

requester is anyone required to file an information return.

Form W-8BEN. See Pub. 515 and Pub. 519.

A payee is anyone required to provide a TIN to the

CAUTION

requester.

You may be subject to a penalty for an incorrect or

Payee's agent. A payee's agent can be an investment

missing TIN on an information return. See part O. You are

advisor (corporation, partnership, or individual) or an

required to maintain the confidentiality of information

introducing broker. An investment advisor must be

obtained on a Form W-9/W-9S relating to the taxpayer's

registered with the Securities and Exchange Commission

identity (including SSNs, EINs, ITINs, and ATINs), and

(SEC) under the Investment Advisers Act of 1940. The

you may use such information only to comply with the tax

introducing broker is a broker-dealer that is regulated by

laws.

the SEC and the National Association of Securities

Dealers, Inc., and that is not a payer. Except for a broker

If the recipient does not provide a TIN, leave the

who acts as a payee's agent for “readily tradable

box for the recipient's TIN blank on the Form

TIP

instruments,” the advisor or broker must show in writing to

1097, 1098, 1099, 3921, 3922, 5498, or W-2G.

the payer that the payee authorized the advisor or broker

Backup withholding may apply; see part N.

to transmit the Form W-9 to the payer.

If the recipient does not provide a TIN, you may

Generally, the electronic system must do the following.

not make the election described in Regulations

1. Ensure the information received is the information

section 1.1471-4(d)(5)(i)(A) or (B) or report as

sent and document all occasions of user access that

CAUTION

described in Regulations section 1.1471-4(d)(2)(iii)(A).

result in the submission.

The TIN for individual recipients of information returns

2. Make reasonably certain the person accessing the

is the SSN, ITIN, or ATIN. See

Sole

proprietors, earlier.

system and submitting the form is the person identified on

For other recipients, including corporations, partnerships,

Form W-9.

and estates, the TIN is the EIN. Income reportable after

3. Provide the same information as the paper Form

the death of an individual must reflect the TIN of the

W-9.

payee, that is, of the estate or of the surviving joint owner.

4. Be able to supply a hard copy of the electronic Form

For more information, see Personal Representative in

W-9 if the IRS requests it.

Pub. 559. For LLCs, see the information on

Limited

5. Require as the final entry in the submission an

liability company

(LLC), earlier.

electronic signature by the payee whose name is on Form

SSNs, ITINs, and ATINs have nine digits separated by

W-9 that authenticates and verifies the submission. The

two hyphens (000-00-0000), and EINs have nine digits

electronic signature must be under penalties of perjury

separated by only one hyphen (00-0000000). Note. Make

and the perjury statement must contain the language of

sure you include the hyphen(s) in the correct place(s)

the paper Form W-9.

when completing the paper form(s).

-12-

Gen. Instr. for Certain Info. Returns (2017)

General Instructions For Certain Information Returns (Forms 1096, 1097, 1098, 1099, 3921, 3922, 5498, And W-2g) - 2017 Page 12

Related Articles

Related forms

Related Categories