a-98-27.pdf

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# Part IV - Items of General Interest

The Internal Revenue Service Will Permit Electronic Submission of Forms W-9 and
W-9S

## Announcement 98-27

Form W-9

The Internal Revenue Service will allow payers to establish a system to
electronically receive Forms W-9, Request for Taxpayer Identification Number and
Certification. In general, the electronic system must meet the requirements described
in paragraphs (1) through (5) below. However, for Forms W-9 that are not required to
be signed, the electronic system need not meet the requirements described in
paragraph (3). The IRS will revise the "Instructions for the Requester of Form W-9" to
reflect the provisions of this announcement.

For purposes of this announcement, "payer" refers to a person required to file an
information return. "Payee" refers to the person required to submit Form W-9 to the
payer.

Form W-9S

The Internal Revenue Service will also allow educational and lending institutions
to establish a system for students and borrowers to electronically submit Form W-9S,
Request for Student's or Borrower's Social Security Number and Certification. The IRS
will revise the instructions for Form W-9S to reflect the provisions of this
announcement. In general, the electronic system must meet the requirements
described in paragraphs (1), (2), (4), and (5) below. Further, if an electronic Form W-
9S is used to certify that the borrower will use the loan proceeds to pay for qualified

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higher education expenses, the lending institution's electronic system must also meet
the requirements described in paragraph (3)(A) below.

### Requirements

(1) In general. The electronic system must ensure that the information received
by the payer or educational or lending institution is the information sent by the payee,
student, or borrower. The system must document all occasions of user access that
result in the submission. In addition, the design and operation of the electronic system,
including access procedures, must make it reasonably certain that the person
accessing the system and submitting the Form W-9 or W-9S is the person identified in
the form.

(2) Same information as paper Form W-9 or W-9S. The electronic submission
must provide the payer or educational or lending institution with exactly the same
information as the paper Form W-9 or W-9S.

(3) Signature requirements and perjury statement. The electronic submission
must be signed with an electronic signature by the payee whose name is on the Form
W-9 or by the borrower whose name is on the Form W-9S.

(A) Electronic signature. The electronic signature must identify the payee
or borrower submitting the electronic form and must authenticate and verify the
submission. For this purpose, the terms "authenticate" and "verify" have the same
meanings as they do when applied to a written signature on a paper Form W-9 or
W-9S. An electronic signature can be in any form that satisfies the foregoing
requirements. The electronic signature must be the final entry in the submission.

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(B) Perjury statement. The electronic signature on Form W-9 must be
under penalties of perjury. The perjury statement must contain the language that
appears on the paper Form W-9. The electronic system must inform the payee that he
or she makes the declaration contained in the perjury statement and that the
declaration is made by signing the Form W-9. The instructions and the language of the
perjury statement must immediately follow the payee's certifying statements and
immediately precede the electronic signature.

(4) Copies of electronic Forms W-9 or W-9S. Upon request by the Internal
Revenue Service, the payer or educational or lending institution must supply a hard
copy of the electronic Form W-9 or W-9S and a statement that, to the best of the
payer's or educational or lending institution's knowledge, the electronic Form W-9 or
W-9S was submitted by the named payee, student, or borrower. The hard copy of the
electronic Form W-9 or W-9S must provide exactly the same information as, but need
not be a facsimile of, the paper Form W-9 or W-9S.

(5) Effective date. This announcement applies to Forms W-9 and W-9S
submitted electronically by payees, students, or borrowers on or after April 13, 1998.
For further information regarding this announcement, contact Donna Welch of
the Office of the Assistant Chief Counsel (Income Tax and Accounting) at
(202) 622-4910 (not a toll-free call).

Approved:

National Director, Tax Forms and Publications Division

Date