We have a vendor who recently responded to a "second" . . .
Question
We have a vendor who recently responded to a "second" B-Notice by sending us his correct TIN, but not by providing the letter or form we requested. Can we accept this as documentation for our records?
Answer
No, not as documentation that will prevent backup withholding from applying to payments to this vendor. The only acceptable documentation in response to a second B-Notice letter is Form 7028 from the Social Security Administration or letter 147C from the IRS. If you do not obtain the correct documentation from this payee, you will have to backup withhold on all payments until he can provide the appropriate SSN or IRS proof of TIN.