Title: Tax Identification Numbers, IRS Form W-9
Effective date: 3/13/01
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.
The following steps will be taken to ensure that the University is in compliance with Federal requirements.
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.
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.