Form W-9 (Rev. 1-2011)
Page
2
The person who gives Form W-9 to the partnership for purposes of
establishing its U.S. status and avoiding withholding on its allocable
share of net income from the partnership conducting a trade or business
in the United States is in the following cases:
• The U.S. owner of a disregarded entity and not the entity,
• The U.S. grantor or other owner of a grantor trust and not the trust,
and
• The U.S. trust (other than a grantor trust) and not the beneficiaries of
the trust.
Foreign person.
If you are a foreign person, do not use Form
W-9.
Instead, use the appropriate Form W-8 (see Publication
515,
Withholding of Tax on Nonresident Aliens and Foreign
Entities).
Nonresident alien who becomes a resident alien.
Generally,
only a
nonresident alien individual may use the terms of a tax
treaty to reduce
or eliminate U.S. tax on certain types of income.
However, most tax
treaties contain a provision known as a
“saving clause.” Exceptions
specified in the saving clause may
permit an exemption from tax to
continue for certain types of
income even after the payee has otherwise
become a U.S.
resident alien for tax purposes.
If you are a U.S. resident alien who is relying on an exception
contained in the saving clause of a tax treaty to claim an exemption
from U.S. tax on certain types of income, you must attach a statement
to Form W-9 that specifies the following five items:
1. The treaty country. Generally, this must be the same treaty under
which you claimed exemption from tax as a nonresident alien.
2. The treaty article addressing the income.
3. The article number (or location) in the tax treaty that contains the
saving clause and its exceptions.
4. The type and amount of income that qualifies for the exemption
from tax.
5. Sufficient facts to justify the exemption from tax under the terms of
the treaty article.
Example.
Article 20 of the U.S.-China income tax treaty allows
an
exemption from tax for scholarship income received by a
Chinese
student temporarily present in the United States. Under
U.S. law, this
student will become a resident alien for tax
purposes if his or her stay in
the United States exceeds 5
calendar years. However, paragraph 2 of
the first Protocol to the
U.S.-China treaty (dated April 30, 1984) allows
the provisions of
Article 20 to continue to apply even after the Chinese
student
becomes a resident alien of the United States. A Chinese
student who qualifies for this exception (under paragraph 2 of
the first
protocol) and is relying on this exception to claim an
exemption from tax
on his or her scholarship or fellowship
income would attach to Form
W-9 a statement that includes the
information described above to
support that exemption.
If you are a nonresident alien or a foreign entity not subject to backup
withholding, give the requester the appropriate completed Form W-8.
What is backup withholding?
Persons making certain payments
to you
must under certain conditions withhold and pay to the
IRS a percentage
of such payments. This is called “backup withholding.”
Payments that
may be subject to backup withholding include
interest, tax-exempt
interest, dividends, broker and barter
exchange transactions, rents,
royalties, nonemployee pay, and
certain payments from fishing boat
operators. Real estate
transactions are not subject to backup
withholding.
You will not be subject to backup withholding on payments you
receive if you give the requester your correct TIN, make the proper
certifications, and report all your taxable interest and dividends on your
tax return.
Payments you receive will be subject to backup
withholding if:
1. You do not furnish your TIN to the requester,
2. You do not certify your TIN when required (see the Part II
instructions on page 3 for details),
3. The IRS tells the requester that you furnished an incorrect TIN,
4. The IRS tells you that you are subject to backup withholding
because you did not report all your interest and dividends on your tax
return (for reportable interest and dividends only), or
5. You do not certify to the requester that you are not subject to
backup withholding under 4 above (for reportable interest and dividend
accounts opened after 1983 only).
Certain payees and payments are exempt from backup withholding.
See the instructions below and the separate Instructions for the
Requester of Form W-9.
Also see
Special rules for partnerships
on page 1.
Updating Your Information
You must provide updated information to any person to whom you
claimed to be an exempt payee if you are no longer an exempt payee
and anticipate receiving reportable payments in the future from this
person. For example, you may need to provide updated information if
you are a C corporation that elects to be an S corporation, or if you no
longer are tax exempt. In addition, you must furnish a new Form W-9 if
the name or TIN changes for the account, for example, if the grantor of a
grantor trust dies.
Penalties
Failure to furnish TIN.
If you fail to furnish your correct TIN to a
requester, you are subject to a penalty of $50 for each such
failure
unless your failure is due to reasonable cause and not to
willful neglect.
Civil penalty for false information with respect to withholding.
If you
make a false statement with no reasonable
basis that results in no
backup withholding, you are subject to a
$500 penalty.
Criminal penalty for falsifying information.
Willfully falsifying
certifications or affirmations may subject you to criminal
penalties
including fines and/or imprisonment.
Misuse of TINs.
If the requester discloses or uses TINs in
violation of
federal law, the requester may be subject to civil and
criminal penalties.
Specific Instructions
Name
If you are an individual, you must generally enter the name shown on
your income tax return. However, if you have changed your last name,
for instance, due to marriage without informing the Social Security
Administration of the name change, enter your first name, the last name
shown on your social security card, and your new last name.
If the account is in joint names, list first, and then circle, the name of
the person or entity whose number you entered in Part I of the form.
Sole proprietor.
Enter your individual name as shown on your
income
tax return on the “Name” line. You may enter your
business, trade, or
“doing business as (DBA)” name on the
“Business name/disregarded
entity name” line.
Partnership, C Corporation, or S Corporation.
Enter the entity's name
on the “Name” line and any business, trade, or “doing business as
(DBA) name” on the “Business name/disregarded entity name” line.
Disregarded entity.
Enter the owner's name on the “Name” line. The
name of the entity entered on the “Name” line should never be a
disregarded entity. The name on the “Name” line must be the name
shown on the income tax return on which the income will be reported.
For example, if a foreign LLC that is treated as a disregarded entity for
U.S. federal tax purposes has a domestic owner, the domestic owner's
name is required to be provided on the “Name” line. If the direct owner
of the entity is also a disregarded entity, enter the first owner that is not
disregarded for federal tax purposes. Enter the disregarded entity's
name on the “Business name/disregarded entity name” line. If the owner
of the disregarded entity is a foreign person, you must complete an
appropriate Form W-8.
Note.
Check the appropriate box for the federal tax classification of the
person whose name is entered on the “Name” line (Individual/sole
proprietor, Partnership, C Corporation, S Corporation, Trust/estate).
Limited Liability Company (LLC).
If the person identified on the
“Name” line is an LLC, check the “Limited liability company” box only
and enter the appropriate code for the tax classification in the space
provided. If you are an LLC that is treated as a partnership for federal
tax purposes, enter “P” for partnership. If you are an LLC that has filed a
Form 8832 or a Form 2553 to be taxed as a corporation, enter “C” for
C corporation or “S” for S corporation. If you are an LLC that is
disregarded as an entity separate from its owner under Regulation
section 301.7701-3 (except for employment and excise tax), do not
check the LLC box unless the owner of the LLC (required to be
identified on the “Name” line) is another LLC that is not disregarded for
federal tax purposes. If the LLC is disregarded as an entity separate
from its owner, enter the appropriate tax classification of the owner
identified on the “Name” line.
