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In that case, you may rely on the Form W-9 for purposes of

Payments made in settlement of payment card or third par-

obtaining the payee’s TIN, but you must treat the payee as

ty network transactions. Only payees listed in items 1 through

non-exempt. If the payee failed to enter an exempt payee code,

4 are exempt.

but the classification selected indicates that the payee is

Payments Exempt From Backup

exempt, you may accept the classification and treat the payee as

exempt unless you have actual knowledge that the classification

Withholding

is not valid.

Payments that are not subject to information reporting also are

If the payee is not exempt, you are required to backup

not subject to backup withholding. For details, see sections

withhold on reportable payments if the payee does not provide a

6041, 6041A, 6042, 6044, 6045, 6049, 6050A, 6050N, and

TIN in the manner required or does not sign the certification, if

6050W and their regulations. The following payments generally

required.

are exempt from backup withholding.

1. An organization exempt from tax under

Dividends and patronage dividends.

section 501(a), any IRA, or a custodial account under section

Payments to nonresident aliens subject to withholding under

403(b)(7) if the account satisfies the requirements of section

section 1441.

401(f)(2);

Payments to partnerships not engaged in a trade or business

2. The United States or any of its agencies or

in the United States and that have at least one nonresident alien

instrumentalities;

partner.

3. A state, the District of Columbia, a U.S. commonwealth or

Payments of patronage dividends not paid in money.

possession, or any of their political subdivisions, agencies, or

Payments made by certain foreign organizations.

instrumentalities;

Section 404(k) distributions made by an ESOP.

4. A foreign government or any of its political subdivisions,

Interest payments.

agencies, or instrumentalities; or

Payments of interest on obligations issued by individuals.

5. A corporation;

However, if you pay $600 or more of interest in the course of

your trade or business to a payee, you must report the payment.

6. A dealer in securities or commodities required to register

Backup withholding applies to the reportable payment if the

in the United States, the District of Columbia, or a U.S.

payee has not provided a TIN or has provided an incorrect TIN.

commonwealth or possession;

Payments described in section 6049(b)(5) to nonresident

7. A futures commission merchant registered with the

aliens.

Commodity Futures Trading Commission;

Payments on tax-free covenant bonds under

8. A real estate investment trust;

section 1451.

Payments made by certain foreign organizations.

9. An entity registered at all times during the tax year under

Mortgage or student loan interest paid to you.

the Investment Company Act of 1940;

10. A common trust fund operated by a bank under

Other types of payment.

section 584(a);

Wages.

Distributions from a pension, annuity, profit-sharing or stock

11. A financial institution;

bonus plan, any IRA, an owner-employee plan, or other deferred

12. A middleman known in the investment community as a

compensation plan.

nominee or custodian; or

Distributions from a medical or health savings account and

13. A trust exempt from tax under section 664 or described in

long-term care benefits.

section 4947.

Certain surrenders of life insurance contracts.

Distribution from qualified tuition programs or

The following types of payments are exempt from backup

Coverdell ESAs.

withholding as indicated for payees listed in 1 through 13,

Gambling winnings if regular gambling winnings withholding is

above.

required under section 3402(q). However, if regular gambling

Interest and dividend payments. All listed payees are exempt

winnings withholding is not required under section 3402(q),

except the payee in item 7.

backup withholding applies if the payee fails to furnish a TIN.

Real estate transactions reportable under

Broker transactions. All payees listed in items 1 through 4 and

section 6045(e).

6 through 11 are exempt. Also, C corporations are exempt. A

Cancelled debts reportable under section 6050P.

person registered under the Investment Advisers Act of 1940

Fish purchases for cash reportable under

who regularly acts as a broker also is exempt.

section 6050R.

Barter exchange transactions and patronage dividends.

Payees and Account Holders Exempt

Only payees listed in items 1 through 4 are exempt.

From FATCA Reporting

Payments reportable under sections 6041 and 6041A.

Payees listed in items 1 through 5 generally are exempt.

Reporting under chapter 4 (FATCA) with respect to U.S. persons

However, the following payments made to a corporation and

generally applies only to foreign financial institutions (FFI)

reportable on Form 1099-MISC, Miscellaneous Income, are not

(including a branch of a U.S. financial institution that is treated as

exempt from backup withholding.

an FFI under an applicable intergovernmental agreement (IGA)).

Thus, for example, a U.S. financial institution maintaining an

Medical and health care payments.

account in the United States does not need to collect an

Attorneys' fees (also gross proceeds paid to an attorney,

exemption code for FATCA reporting. If you are providing a

reportable under section 6045(f)).

Form W-9, you may pre-populate the FATCA exemption code

Payments for services paid by a federal executive agency.

with "Not Applicable," "N/A," or a similar indication that an

(See Rev. Rul. 2003-66, which is on page 1115 of Internal

exemption from FATCA reporting does not apply. Any payee that

Revenue Bulletin 2003-26 at

provides such a form, however, cannot be treated as exempt

irb03-26.pdf.)

from FATCA reporting. For details on the FATCA reporting

-3-

Instr. for Req. of Form W-9 (Rev. 11-2017)

Instructions For The Requestor Of Form W-9 - Request For Taxpayer Identification Number And Certification - 2017 Page 3

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