I know that we have to complete a 1099 INT for savings bond redemptions aggregating $10+, but I seem to recall that the redemption of savings bonds is exempt from W-9 certification. Is that right, or should I put my jammies on because I'm dreaming? (I just hate these senior moments!)

Brenda, what I'm remembering is that we are not required to do the W-9 certification, but some banks do it anyway so that if the social is not valid/or not a match the bank can point to our best efforts.
I've been away from this area for a long time, so hopefully someone will correct this if I'm wrong.

Lois is right. You are only required to obtain the number and use the number you obtained. You are not required to get the certification.

Many banks use the W-9 at the collection window through an abundance of caution or, as one banker explained to me, "If I have to write it on something, I might as well write it on a W-9." Fault that logic.

After discussing this with our Systems staff, it appears that they are implementing a W-9 certification for bond coupon collections. I am told that because of TIPRA, paying banks won't accept bond coupons we send for collection without a W-9 form for tax reporting purposes. It seems really strange to me that we would need to obtain the W-9. Wouldn't that be the responsibility of the paying bank to certify the TIN of a bond owner not the institution sending a bond coupon for collection?

(I am SSOOO out of the loop in these issues!)

My question is - since you are acting as the collection agent and the payer may never have direct contact with the payee of the coupons - how would you suggest they obtain a W-9 if you don't collect it for them???

Shouldn't the paying bank have a record of all of their bond owners?

For registered bonds, yes, but not bearer bonds.

There is something I do not understand about the context, but can say that if the paying agent requires my bank to provide documentation only the paying agent needs, the bondholder is going to pay for it.