SECTION 2. BACKGROUND

.01 Under §§ 6109(a)(2) and 3406(a)(1)(A) of the Internal Revenue

Code, a payee of a reportable payment must provide its Taxpayer Identification Number (TIN) to a person who is required to file an information return with respect to the payment. In addition, under § 3406(a)(1)(A) the payee of a reportable interest or dividend payment generally must certify that its TIN is correct and that it is not subject to backup withholding under § 3406(a)(1)(C) for failure to include interest and dividend income on its tax return (required certifications). Section 3406(a)(1)(A) and (D) requires the imposition of backup withholding on a reportable interest or dividend payment to a payee if the payee does not provide its TIN or make the required certifications.

.02 The Internal Revenue Service provides an official Form W–9 for a payee to provide the required certifications to the payor. A payor may use a substitute Form W–9 to obtain the TIN and the required certifications provided the certification requirements in the substitute Form W–9 comply with section 4 of Rev. Proc. 83–89. A payor may incorporate the required certifications into other business forms customarily used, such as account signature cards, provided the required certifications are clearly set forth. See section 5.01 of Rev. Proc. 83–89.