We use Wolters Kluwers signature card and their new release have a place in the Backup Withholding Certification" area to check if "Exempt Recipients and Exempt Payee code". Is this necessary and/or required to be completed? If so, what would you put?

Payees and Account Holders Exempt
From FATCA Reporting
Reporting under chapter 4 (FATCA) with respect to U.S.
persons generally applies only to foreign financial institutions
(FFI) (including a branch of a U.S. financial institution that is
treated as an FFI under an applicable intergovernmental
agreement (IGA)). Thus, for example, a U.S. financial
institution maintaining an account in the United States does
not need to collect an exemption code for FATCA reporting. If
you are providing a Form W-9, you may pre-populate the
FATCA exemption code with "Not Applicable," "N/A," or a
similar indication that an exemption from FATCA reporting
does not apply.

OK so what does it mean on the W-9 form:

"Backup Withholding": I am not subject to backup withholding either because I have not been notified that I am subject to backup withholding as a result of a failure to report all interest or dividends, or the Internal Revenue Service has notified me that I am no long subject to backup withholding.

We always check this block. Is there ever a case where we would not?

YOU should not be checking any blocks on the form. The person signing the form fills it out. The text you refer to says in a convoluted way that the party providing the W-9 either has never been notified that it/she/he is subject to backup withholding due to underreporting of interenst/dividend income, or has been so notified and subsequently notified that BUWH is no longer required.

Just wanted to make certain people noticed that. Bankers should not be checking the box because they simply have no idea if the statement is true.