Under US law on the taxation of all types of accounts that participate in the taxation system, all organizations must provide true data about all holders of accounts belonging to the category of specified persons who are tax residents of the United States.
Individual categories of beneficiaries are exempted from submitting data about them under the FATCA version law. To get more intelligence, see “Release Code for providing information under the FATCA law” and in separate instructions for the person requesting the W-9 form.
Timely updated information – your legal participation in the taxation system
You must provide updated data to the person to whom you reported that you are a recipient of tax-exempt payments if you cease to be a tax-exempt recipient and expect to receive in the future from that person payments to be reflected in the tax return. For example, you may need to provide updated data if you are a type C corporation, but decide to become a Type S corporation, or if you cease to be exempt from taxes. In addition, you must provide a new W-9 IRS in case of a change in the name / name or TIN of the account (for example, in the event of the death of the owner of the trust fund the new blank should be given). Penalties include:
- Failure to guarantee TIN. If you do not ensure your requester with the correct tax ID, you can be fined $ 50 for every failure to provide a TIN, unless it was not provided towards objective reason, and not as a result of willful neglect;
- Civil penalty because of the false information regarding withholding. If you ensure false information because of a disrespectful reason, as a result of which additional tax deduction will not be made, a fine of $ 500 may be imposed on you;
- Criminal punishment because of the falsifying writable information. Deliberate falsification of evidence or statements may be grounds which are bringing you to criminal liability, including the imposition of fines and / or imprisonment;
- Abuse of TIN. If the requesting individual discovers the TIN or uses it in violation of federal law, the requesting person may be brought to civil and criminal liability.