Initial and Annual Solicitations - General Rules
•
an account is opened or
relationship established, unless
the payer already has the
payee’s TIN and uses that TIN
for all accounts of the payee.
•
If a TIN is not received as a
result of an initial solicitation,
the filer is required to make up
to two annual solicitations until
•
Must be made at the time an
account is opened or relationship
established unless the payer
already has the payee’s TIN and
uses that TIN for all accounts of
the payee.
•
No additional solicitation is
required after the filer receives
the TIN unless the IRS, or broker,
notifies the filer that the TIN is
Solicitation
•
Must be made if a TIN is not
received as a result of an initial
solicitation.
•
Must be made on or before
December 31 of the year in
which the account is opened
or relationship established (for
accounts opened or relationship
established before December)
or January 31 of the following
year (for accounts opened or
relationship established in the
preceding December) (“annual
solicitation period”).
•
Must be made if filer has been
notified of an incorrect TIN,
whether by a broker or by the IRS
(in a backup withholding notice
(CP2100/ CP2100A), or penalty
notice (Notice 972CG)).
•
If notified by penalty notice, the
annual solicitation must be made
on or before December 31 of the
year in which the filer is notified
or by January 31 of the following
year if notified in the preceding
December. If notified by backup
withholding notice, solicitations
must be made pursuant to the
rules in IRC 3406. See Pub. 1281.
•
If a backup withholding notice
is received related to the same
payee in the same year as the
penalty notice, or related to an
information return for the same
tax year, and the filer sent the
required B notice under IRC 3406,
an additional solicitation is not
needed under IRC 6724.
Solicitation
•
Must be made if a TIN is not
received as a result of the first
annual solicitation.
•
Must be made after the
expiration of the annual
solicitation period and on or
before December 31 of the
year immediately succeeding
the calendar year in which
the account is opened or
relationship established.
•
Must be made if filer is notified in
any year following the year of the
first annual solicitation that the
account of a payee contains an
incorrect TIN.
•
Must be made on or before
December 31 of the year in which
the filer is notified of an incorrect
TIN.