Several aspects of a draft tax reporting form raise “significant concerns” and could lead to the IRS being inundated with incorrect taxpayer data, the American Bankers Association said in a letter to the agency.
The IRS recently released for review its updated draft W-9 form, which is used to report taxpayer identification numbers. ABA said the draft form contains several problems for financial institutions, taxpayers and the broader business community, and that it is likely to result in “near-constant confusion and outreach from concerned taxpayers.”
ABA recommended possible fixes, including a clarification that any updates made to Form W-9 should be on a prospective basis and should generally align with the existing “six-month rule” applicable to Forms W-8.
