SSN Policy Manual

United States Code of Federal Regulations

Title Questions and answers concerning the due diligence requirement and the certification requirements in connection with backup withholding and other related issues.

Purpose The following questions and answers principally concern the due diligence exception to the penalty ... for failure to provide the payee's correct taxpayer identification number . .. (2-23. Is a payor required to send mailings to a payee with respect to an account established under the Uniform Gift to Minors Act? A-23. Yes. The law requiresthat the social security number of the minor be provided to the payor with respect to accounts established under the Uniform Gift to Minors Act. If the minor does not have a social security number, the minor may obtain one by filing a Form SS-5 with a Social Security Administration Office. ... 0 2 6 . If a payee does not provide a taxpayer identification number to the payor what action is a payor required to take? A-26. Starting January 1, 1984, the payor is required to commence backup withholding with respect to reportable payments to payees who have not provided a taxpayer identification number to the payor. If an individual payee does not have a social security number, he may obtain one by filing Form SS-5 with a Social Security Administration Office. ... Q-28. is a payor required to impose backup withholding with respect to a reportable interest or dividend payment made on or after January 1, 1984, if the taxpayer identification number furnished by the payee does not contain the proper number of digits? A-28. Yes. A payor shall treat the payee as having failed to furnish a taxpayer identification number If the number provided does not contain the proper number of digits. The proper number of digits is nine for both the social security number and the employer identification number. ... Q-30. Is a payor required to impose backup withholding on a pension or annuity distribution made on or after January 1, 1984, if the payee has not provided his taxpayer identification number to the payor? A-30. If pension withholding ... if the payor has no social security number for the payee (or the social security number provided is obvlously ~ncorrect)t,he payor shall not impose backup withholding until the first payment made after June 30,1984. By that date, the payee will have been able to obtain a social security number and provide it to the payor, in which case no amounts wili be withheld. ... 4ppendix ... Recently, you purchased [identify security acquired]. Because of the existence of one or more of the following conditions, payments of interest, dividends, and other reportable amounts that are made to you wili be subject to backup withholding of tax at a 20 percent 'ate: [specify the condition or conditions applicable] (1) You failed to wovide a taxpayer identification number, or failed to provide such iurnber under penalties of perjury, in connection with the purchase of the acquired security. (An individual's taxpayer identification number is iis social security number.) ... .. The preceding sentence applies only with respect to a payor who 'eceives such two or more notices under the same payor employer dentification number (or social securlty number). ... .. A power of attorney must contain ... (2) identification number of the axpayer (i.e., social security number and/or employer identification lumber); .. Each Form W-2G shall contain ... (2) Name, address, and social security number of the winner; (3) General description of two types of dentification (e.g., 'driver's license", "social security card", or "voter .egistration card") furnished to the maker of the payment for verification )f the winner's name. address, and social securitv number:

Code 26 CFR 35a.9999-1

Questions and answers concerning backup withholding. Requirements of power of attorney, signatures, fiduciaries and Commissioner's authority to substitute other requirements. Return of information as to payments of winnings from bingo, keno, and slot machines.

!6 CFR 35a.9999-3

!6 CFR 601.503

16 CFR 7.6041-1