Thread Options
#117632 - 09/25/03 07:01 PM IRS Assignment letter
Calmeida Offline
New Poster
Joined: Sep 2003
Posts: 7


Hi everyone:
I just signed up for this service today! These are my first questions:
1) When opening a business account, the IRS assignment letter is required. If the customer doesn't have it, can we use a copy of a coupon from the TT&L booklet or can we use a copy of the tax return? Can the customer request a copy of the assignment letter from the IRS? Are we really required to request the assignment letter?
2) We have a customer that has an account that reads Law Offices of John Smith, the state assigned him a TIN #. He does business as an individual. He says that he does not have a trade name or certificate from the state. Should he?

Return to Top
BSA/AML/CIP/OFAC Forum
#117633 - 09/25/03 07:17 PM Re: IRS Assignment letter
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,289
Cape Cod
As for verifying the TIN, your CIP may require that you review an IRS document (or you could be real specific and require that you see a copy of the assignment letter). But the regulation doesn't require specifically that you verify the TIN. You must satisfy yourself as to the identity of the customer.

This you can do in a number of ways, including getting copies of documents, etc. If you wish to verify TIN, I cannot recommend requiring the customer supply a copy of the TIN assignment letter. That could be with the business's accountant or attorney, or squirrelled away almost anywhere. But you might have success asking to see some form of IRS document such as a form 941 printed with the business's name by the IRS, or a tax return front page, or a deposit booklet. I'm sure the customer could obtain a copy of the assignment letter from the IRS, but aren't you asking a bit too much here? After all, CIP is not supposed to make it difficult for honest people to open bank accounts!

As for attorney Smith. First of all, the TIN was assigned by the IRS, not the state. TINs are assigned to sole proprietors who must pay employees. If he's using his own name, he doesn't need a trade name or fictitious name certificate. All he needs is his license to practice law. You could ask for a copy of that.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top

Moderator:  Andy_Z