New W-9's

[Burke]

Client's brokerage recently sent him new W-9 to sign saying the one on file did not meet IRS specifications. As far as I can tell, it is due to the FATCA references, although that does not affect this taxpayer nor his brokerage account. Are all brokerages demanding these? Haven't heard from any other TP's.

[TAXNJ]

1983

Here is one from 1983. Always asked for the signature. Yes, FATCA is mentioned in the 2014 form, but not prior years.

Is your client subject to the FATCA requirements. Maybe client never signed original? Does client have copy of original to reference?

http://www.irs.gov/pub/irs-prior/fw9--1983.pdf

[TAXNJ]

Better yet

Find out from the Brokerage firm why it did not meet iIRS requirements. Takes the guessing out when you go to the source.

[taxea]

I agree with NJ on this one...ask the source

[Roberts]

Client's brokerage recently sent him new W-9 to sign saying the one on file did not meet IRS specifications. As far as I can tell, it is due to the FATCA references, although that does not affect this taxpayer nor his brokerage account. Are all brokerages demanding these? Haven't heard from any other TP's.

FINRA guidelines dictate that new account statements be routinely requested to prove that you have current knowledge of and routine contact with clients. Most of the time W-9's are automatically generated when a new account statement is generated.

Also, anti-money laundering guidelines require other information on the W-9 than previously and it's not just limited to foreign accounts. Our clearing firm requires that all clients sign a new W-9 affirming the client and account are not associated with an illegal online gambling site. There is also routinely privacy act information on the W-9 that they must disclose.

I seriously doubt the W-9 had to do with IRS changes as much as SEC changes. The IRS issue is that periodically the IRS wants the client to verify that they are not subject to required automatic withholding because of an IRS declaration.

[TAXNJ]

ROBERTS. ? Interesting

FINRA guidelines dictate that new account statements be routinely requested to prove that you have current knowledge of and routine contact with clients. Most of the time W-9's are automatically generated when a new account statement is generated.

Also, anti-money laundering guidelines require other information on the W-9 than previously and it's not just limited to foreign accounts. Our clearing firm requires that all clients sign a new W-9 affirming the client and account are not associated with an illegal online gambling site. There is also routinely privacy act information on the W-9 that they must disclose.

I seriously doubt the W-9 had to do with IRS changes as much as SEC changes. The IRS issue is that periodically the IRS wants the client to verify that they are not subject to required automatic withholding because of an IRS declaration.

That is interesting. Can you help explain:

SEC changes as you mention & your clearing firm requires that all clients sign a new W-9 affirming the client and account are not associated with an illegal online gambling site.

So they use an IRS FORM W-9 to affirm? Where on the form W-9 that affirms the client and account are not associated with an illegal online gambling site.

Would your clearing firm requires that all clients sign a new W-9 affirming the client and account are not associated with an illegal online gambling site on a separate statement other than a W-9?

This would be educational. Thanks in advance.

[Roberts]

So they use an IRS FORM W-9 to affirm? Where on the form W-9 that affirms the client and account are not associated with an illegal online gambling site.

Would your clearing firm requires that all clients sign a new W-9 affirming the client and account are not associated with an illegal online gambling site on a separate statement other than a W-9?

This would be educational. Thanks in advance.

Are you under the impression that investment firms utilize the standard W-9 from the website?
Almost every investment firm in the country including mutual fund companies use a personalized form which meets the ultra basic IRS requirement and then include a plethora of SEC / FINRA required information. American funds doesn't even give you a form that's called the W-9, on their application page 8 is a list of attestations that come from the W-9 and when you sign the application it's included.

The IRS doesn't receive a copy of the W-9 unless they specifically request it and they've never requested one from us.

[TAXNJ]

YES and THANKS

Are you under the impression that investment firms utilize the standard W-9 from the website?
Almost every investment firm in the country including mutual fund companies use a personalized form which meets the ultra basic IRS requirement and then include a plethora of SEC / FINRA required information. American funds doesn't even give you a form that's called the W-9, on their application page 8 is a list of attestations that come from the W-9 and when you sign the application it's included.

The IRS doesn't receive a copy of the W-9 unless they specifically request it and they've never requested one from us.

Yes to "Are you under the impression that investment firms utilize the standard W-9 from the website?"

Thanks and WOW to "......then include a plethora of SEC / FINRA required information."
noun: plethora; plural noun: plethoras
a large or excessive amount of (something).
"a plethora of committees and subcommittees"
synonyms: excess, overabundance, superabundance, surplus, glut, superfluity, surfeit, profusion; More

Original Post mentioned W-9 (singular) but your post added valuable information. Wonder how many clients read the plethora of SEC / FINRA required information to sign. Imagine if they ask the tax preparer to explain all that before they sign the application! Then could start charging those Broker Fees!

Thanks again for your post reply.