Our deposit signature cards have a Backup Withholding Certification area. If the customer has previously signed a W-9, does he have to sign the Backup Withholding Certification area on the signature card every time he opens a new account?

My Opinion is that on a W-9 a person certifies
1. They are a person
2. This is their number
These items should not change
3. They are not subject to backup withholding
This can change over time, therefore for each new account opening they should re-certify that they are not subject to backup withholding.

Thanks. I hadn't thought of it that way.

Regardless, only one W-9 is required for the relationship. However, it takes just as long to sign that section on the card as it does write "W-9 on file".

Use caution though, the primary on the account must have a signed W-9 on file. If someone has a W-9 and then becomes secondary on another account, a W-9 for the primary on that account must be obtained or backup withholding is in order.

If you have been reporting interest for the customer in the past and he/she becomes subject to backup withholding, the IRS will promptly let you know.

A W-9 for every primary? Why not just have a TIN certification and Backup Withholding Section on the signature card. I have never signed a W-9 for any account I have ever opened at my bank or any other bank...in fact this is the first I have ever heard about requiring a W-9 for all primary account holders.

Well, a lot of banks include substitute W-9 language in their signature (contract) documents, and require a separate signature in that section of the form by the primary account customer (the one whose TIN would be used for tax reporting reasons).

Milby, check out this link: http://www.irs.gov/pub/irs-pdf/iw9.pdf. It is the instructions for requestors of W-9s. There is a section on the substitute W-9 that John mentions. If you look at your bank's signature cards, you will probably find one.

We do...just wanted reassurance