UW-Parkside Procurement Memo:
Title: Tax Identification Numbers, IRS Form W-9
Effective date: 3/13/01
INTRODUCTION
For 1099 reporting purposes, the Internal Revenue Service requires the University to use valid Tax Identification Numbers (TIN) when paying through our accounts payable department. If the University does not have a TIN for a reportable 1099 payment, the University is obligated to withhold 31% of the payment for Federal tax purposes. The vehicle ordinarily utilized to obtain this information is a W-9 form completed by the payee. While not legally obligated to use a W-9 form, the University needs evidence that the TIN used was provided by the payee. If the University fails to withhold for a 1099 reportable payment for which there is no valid TIN, the University is liable for the amount that was to have been retained plus a penalty.
PROCEDURE
The following steps will be taken to ensure that the University is in compliance with Federal requirements.
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Departments requesting a payment through Accounts Payable should include a Social Security Number or an Employer Identification Number for an individual, sole proprietor, LLC, or corporate entity. It is also requested that a W-9 completed by the designated vendor or individual be included with an initial transaction request.
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When a vendor is established in SFS and no TIN has been provided, the originating office will be reminded that a W-9 should be included with an initial transaction and notified that backup withholding may be retained on 1099 reportable payments to entities not specifically identified as corporations. Purchasing will send a W-9 and cover letter to the payee requesting the TIN. Full payment will be initiated upon timely receipt of the required information.
- The IRS is now requiring the 9 digit zip codes for all 1099 reportable payments. All payment requests must include the 9 digit zip code before the payment can be processed. The United States Postal Service provides assistance at Zip Code Lookup to help with this effort.
- If a TIN is not provided within 20 days of the initial request, backup withholding is to begin where applicable and continue until a valid TIN is received. A second request for a W-9 and a cover letter notifying of the withholding will be sent to the payee with a copy to the requesting department.
The W-9 Form is in "pdf" format (Adobe Acrobat Reader Required).
DOWNLOAD Adobe Acrobat Reader by clicking here.
DOWNLOAD the W-9 Form by clicking here.
