Fundamental nuances during the tax documentation delivery

A natural or legal person requesting business registration form W-9 and obliged to submit an data tax return to the US imposition authority must obtain your correct TIN, which may also be a social security number, a personal US cess number (ITIN), a temporary US tax number (ATIN ) or employer identification number, to provide data in the information imposition declaration on the amounts paid to you, or other amounts for which the declaration is provided.

Consequences of legislation

  • If you do not provide the corrected W-9 to the requesting person, you may be fined $ 50 per each failure to provide the TIN, unless the TIN was not provided according to valid reasons and not as a result of willful disregard;
  • Civil penalty for false information regarding withholding. If, by no good reason, you provide false data, as a result of which additional tax withholding will not be incurred, you may be fined $ 500;
  • Criminal penalty for falsification of data. Deliberate falsification of evidence or statements may be grounds for bringing you to criminal responsibility, including the imposition of fines and (or) imprisonment;
  • Abuse TIN. If the contractor discloses W-9 exemption code individual, he will have to take responsibility in accordance with applicable law.

Updating of the information

Only true data should be provided to the person to whom you have reported that you are a recipient of payments exempted from paying tax if you cease to be a recipient of payments exempted from paying taxes, and expect to receive payments from the said person in the future to be reflected in the tax return. For example, you may be required to provide updated information if you are a type C corporation, but decide to become a type S corporation, or if you stop being exempted from paying impositions. In addition, you must give a new paper in the event of a name/name change or TIN on the account.

Breaches by the contractor: the way of behaving

If a contractor refuses to complete W-9, this can be interpreted as an act of discrimination. The “patient” issue of discrimination in employment is decided in the US and at the federal and state levels. Discrimination is prohibited by the law, but it insists that each state itself adopt additional acts of protection against discrimination of anyone. You must ask the tax office (IRS) or your agent in favor of help with the appropriate application.