Common use of Taxpayer Identification Number and Backup Withholding Clause in Contracts

Taxpayer Identification Number and Backup Withholding. The Internal Revenue Service (IRS) requires recipients of dividend, interest, or other payments to give taxpayer identification numbers to credit unions and other payers who must report these payments to the IRS. The IRS uses the numbers for identification purposes. Credit unions and other payers must have on file the taxpayer identification numbers whether or not recipients are required to file tax returns. Credit unions and other payers must generally withhold a percentage of taxable interest, dividends, and certain other payments to a payee who does not furnish a taxpayer identification number and for members who are subject to backup withholding. Certain penalties may also apply. We will withhold funds from your account and report the amount and send the funds to the IRS in the event: You have been notified by the IRS that you are subject to backup withholding due to payee under-reporting and you have not received a notice from the IRS that the backup withholding has been terminated. If you provide us with an incorrect taxpayer identification number, the Credit Union is required to withhold payment in part, of dividends or interest owed to you in amounts determined by the IRS and to pay interest or dividends withheld to the IRS.

Taxpayer Identification Number and Backup Withholding. The Internal Revenue Service (IRS) requires recipients of dividend, interest, or other payments to give taxpayer identification numbers to credit unions and other payers who must report these payments to the IRS. The IRS uses the numbers for identification purposes. Credit unions and other payers must have on file the taxpayer identification numbers whether or not recipients are required to file tax returns. Credit unions and other payers must generally withhold a percentage of taxable interest, dividends, and certain other payments to a payee who does not furnish a taxpayer identification number and for members who are subject to backup withholding. Certain penalties may also apply. We will withhold funds from your account and report the amount and send the funds to the IRS in the event: : a. You have been notified by the IRS that you are subject to backup withholding due to payee under-under- reporting and you have not received a notice from the IRS that the backup withholding has been terminated. . b. If you provide us with an incorrect taxpayer identification number, the Credit Union is required to withhold payment in part, of dividends or interest owed to you in amounts determined by the IRS and to pay interest or dividends withheld to the IRS.