Click to return to BOL home page
Banker Store Read A Reg BOL Insiders Career Connect Learning Connect Bankers Information Network

Search BankersOnline
using Google

MAIN CONTENT 
Compliance

    Agency Road Maps

    Alphabet Soup

    Compliance Tools

    FACTA/FCRA

    OFAC

Lending

    FACTA/FCRA

    Lending Tools

    SCRA

Marketing

Operations

    Check 21

    Operations Tools

    SAR Resrch Guide

Security

    AML/BSA

    Bank Robbery

    Counterfeits

    ID Fraud/Phishing

    Security Tools

Technology/eBanking

    Info Security


SPECIAL AREAS 
BOL Archives

BOL Blogs

Briefing Archive

Calendar

Court Watch

e-Card Exchange

Examiner's Corner

Executive Briefing

HR Corner

Infovault

Launch Pad

Regulator Roadmaps

Risk Management

Site Map

Site Orientation

Top Stories


~ ~ ~
SERVICES 
CrimeDex

Em@il Education

ID Verification


~ ~ ~
SHOP 

Banker Store

Bankers Info Ntwk

CONNECT 

Career Connect

Learning Connect

Guru Central

INTERACT 

Ask a Guru
Bankers Threads

Contact Us

Give Us Feedback


TOOLS 


60 Second Solutions

Alphabet Soup

Banker Tools

BOL Forms

FUN 

BOL Recipes

eCard Exchange

LEARN MORE 


About Our Sponsors
About Us




Print Friendly! Email This Article! Discuss NOW!

TIN Requirements For Nonprofit Organizations
by Mary Beth Guard, BOL Guru

Question: At a recent Advanced New Accounts seminar, the speaker stated that all accounts, with the exception of those specifically exempted under 103.34 (BSA), must have a TIN on file. It was my understanding that nonprofits (such as Billy Bob's Bowling or a neighborhood soccer team) must have a TIN on file. Is this correct? I have been told that asking accounts like these to obtain a TIN is very difficult because it results in additional IRS forms that must be completed by these organizations. Are there any practical solutions to this problem? Apparently, the former compliance officer told the new accounts people to simply write "nonprofit" on the W-9 and not worry about a TIN. Since the BSA requires us to keep a list of those accounts lacking a TIN, can we get by without insisting that these types of organizationss file for one, or will the USA PATRIOT Act likely mandate that we obtain a number in all instances?

Answer: There are two different sources of the requirements for TINs: one is the IRS (for information reporting purposes) and the other is the Bank Secrecy Act. The Bank Secrecy Act regulations set forth certain types of accounts where you are not required to obtain a Taxpayer ID Number for BSA purposes. There is no exception, either under the IRS regs or the Bank Secrecy Act, for accounts for informal organizations, such as Billy Bob's Bowling or a neighborhood soccer team. A TIN is easy for such organizations to apply for and obtain, and the only other type of IRS filings they would need to worry about would be where they placed the funds in an interest-bearing account. If they earn interest, they have to pay taxes on the interest. If they have the funds in a non-interest bearing account, and they don't otherwise generate income, they won't have to file anything.

If you do NOT require them to get a separate TIN:
-- you haven't accurately identified your "customer" for purposes of your bank's records;
-- you can encounter problems if you use an individual's SSN as the TIN and that individual dies;
-- you can encounter problems if you use an individual's SSN as the TIN and that individual is the subject of a levy, garnishment, or court order.

In short, there is no good reason not to require a separate TIN and many reasons you should require one.

The original version appeared in the October 2002 edition of the Oklahoma Bankers Association Compliance Informer.

First published on BankersOnline.com 3/31/03






Privacy Policy    Disclaimer   Recommend This Site !   Contact Us


BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Advertisers and sponsors are not responsible for site content. Please help us keep BankersOnline FREE to all banking professionals. Support our advertisers and sponsors by clicking through to learn more about their products and services.