IIAC REQUESTS RELIEF FROM REQUIREMENT TO WITHHOLD ON CLIENTS WAITING ON U.S. TINS
The IIAC submitted a request to the IRS requesting relief for firms that act as Qualified Intermediary from backup withholding on U.S. clients who have applied for a U.S. TIN but have not received it within the 60 day grace period. We believe the circumstances related to delays in obtaining a TIN as a result of Taxpayer Assistance Center closures during COVID-19 are reasonable and out of the control of the client and the potential consequences of the backup withholding unduly harsh. As a result, the IIAC is requesting that W-9 forms be treated as valid for 2020 for purposes of withholding, in instances where clients are missing the TIN information but indicated they have applied for a TIN.
If you have any questions, please contact Adrian Walrath.