AgdaPkt 2015-04-27 Interview and Joint SA and PFA

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7.1.F. - Page 31 dev.12-2011) The person who gives Form W-9 to the partnership for purposes of Certain payees and payments are exempt from backup establishing its U.S.status and avoiding withholding on its allocable See the instructions below and the separate Instructions f share of net income from the partnership conducting a trade or business Requester of Form W-9. in the United States is in the following cases: Also see Special rules for partnerships on page 1. -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, Updating Your Information and You must provide updated information to any person to w -The U.S.trust(other than a grantor trust)and not the beneficiaries of claimed to be an exempt payee if you are no longer an ex T trust. and anticipate receiving reportable payments in the future person.For example,you may need to provide updated ir Foreign person.If you are a foreign person,do not use Form W-9. you are a C corporation that elects to be an S corporation Instead, use the appropriate Form W-8(see Publication 515, longer are tax exempt.In addition,you must furnish a neon Withholding of Tax on Nonresident Aliens and Foreign Entities). the name or TIN changes for the account,for example,if 1 Nonresident alien who becomes a resident alien.Generally,only a grantor trust dies. nonresident alien individual may use the terms of a tax treaty to reduce Penalties or eliminate U.S.tax on certain types of income.However, most tax treaties contain a provision known as a"saving clause."Exceptions Failure to furnish TIN.If you fail to furnish your correct TI specified in the saving clause may permit an exemption from tax to requester,you are subject to a penalty of$50 for each suc continue for certain types of income even after the payee has otherwise unless your failure is due to reasonable cause and not to become a U.S.resident alien for tax purposes, Civil penalty for false information with respect to withl- If you are a U.S.resident alien who is relying on an exception make a false statement with no reasonable basis that rev, contained in the saving clause of a tax treaty to claim an exemption backup withholding,you are subject to a$500 penalty. from U.S.tax on certain types of income,you must attach a statement Criminal penalty for falsifying information.Willfully false to Form W-9 that specifies the following five items: certifications or affirmations may subject you to criminal p 1.The treaty country.Generally,this must be the same treaty under including fines and/or imprisonment. which you claimed exemption from tax as a nonresident alien. Misuse of TINs.If the requester discloses or uses TI Ns ir 2.The treaty article addressing the income. federal law,the requester may be subject to civil and crirn 3.The article number(or location)in the tax treaty that contains the saving clause and its exceptions. Specific Instructions 4.The type and amount of income that qualifies for the exemption Name from tax. 5.Sufficient facts to justify the exemption from tax under the terms of If you are an individual,you must generally enter the name the treaty article. your income tax return.However,if you have changed yoi for instance,due to marriage without informing the Social Example.Article 20 of the U.S.-China income tax treaty allows an Administration of the name change,enter your first name, exemption from tax for scholarship income received by a Chinese shown on your social security card,and your new last nan 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 If the account is in joint names,list first,and then circle, the United States exceeds 5 calendar years.However,paragraph 2 of the person or entity whose number you entered in Part I c the first Protocol to the U.S.-China treaty(dated April 30, 1984)allows Sole proprietor.Enter your individual name as shown on the provisions of Article 20 to continue to apply even after the Chinese tax return on the"Name"line.You may enter your busine: student becomes a resident alien of the United States.A Chinese 'doing business as(DBA)"name on the"Business name/1 student who qualifies for this exception(under paragraph 2 of the first entity name"line. protocol)and is relying on this exception to claim an exemption from tax Partnership,C Corporation,or S Corporation.Enter the on his or her scholarship or fellowship income would attach to Form on the"Name"line and any business,trade,or'doing bur W-9 a statement that includes the information described above to (DBA)name"on the"Business name/disregarded entity n.. support that exemption. Disregarded entity.Enter the owner's name on the"Nam If you are a nonresident alien or a foreign entity not subject to backup name of the entity entered on the"Name"line should nevi withholding,give the requester the appropriate completed Form W-8. disregarded entity.The name on the"Name"line must be What is backup withholding?Persons making certain payments to you shown on the income tax return on which the income will must under certain conditions withhold and pay to the IRS a percentage For example,if a foreign LLC that is treated as a disregan of such payments.This is called"backup withholding." Payments that U.S.federal tax purposes has a domestic owner,the don- may be subject to backup withholding include interest,tax-exempt name is required to be provided on the"Name"line. If the interest, dividends,broker and barter exchange transactions, rents, of the entity is also a disregarded entity,enter the first ow royalties,nonemployee pay,and certain payments from fishing boat disregarded for federal tax purposes.Enter the disregard( operators.Real estate transactions are not subject to backup name on the"Business name/disregarded entity name"lir withholding. of the disregarded entity is a foreign person,you must col You will not be subject to backup withholding on payments you appropriate Form W-8. receive if you give the requester your correct TIN,make the proper Note.Check the appropriate box for the federal tax classi certifications,and report all your taxable interest and dividends on your person whose name is entered on the"Name"line(Indivic tax return. proprietor,Partnership,C Corporation,S Corporation,Tru Payments you receive will be subject to backup Limited Liability Company(LLC).If the person identified withholding if: 'Name"line is an LLC, check the"Limited liability camper 1.You do not furnish your TIN to the requester, and enter the appropriate code for the tax classification in provided.If you are an LLC that is treated as a partnershil 2.You do not certify your TIN when required(see the Part II tax purposes,enter"P"for partnership.If you are an LLC instructions on page 3 for details), Form 8832 or a Form 2553 to be taxed as a corporation, 3.The IRS tells the requester that you furnished an incorrect TIN, C corporation or"5"for S corporation.If you are an LLC t 4.The IRS tells you that you are subject to backup withholding disregarded as an entity separate from its owner under Re because you did not report all your interest and dividends on your tax Re section the LIC box 3(except for owner the and requ r to return(for reportable interest and dividends only),or check the LLC bN unless the s snot another the LLC(required not di on the"Name"line)is another LLC that is not di 5.You do not certify to the requester that you are not subject to federal tax purposes.if the LLC is disregarded as an entit' backup withholding under 4 above(for reportable interest and dividend from its owner, enter the appropriate tax classification of I accounts opened after 1983 only). identified on the"Name"line. ATTY/AGR.2015.061/RWC2020 County BHRS AOD 2015-2017