WASHINGTON The Credit Union National Association has asked the Internal Revenue Service to delay until July 1 a mandate that financial institutions use a revised W-9 tax form.
The form was published in mid-December, and the requirement for its use took effect Jan. 1. It is operationally impossible for credit unions to comply with the change on such short notice, wrote CUNA president Daniel A. Mica in a Jan. 5 letter to IRS Commissioner Charles O. Rossotti.
The new form requires financial institutions to verify that customers are U.S. citizens or resident aliens, verify their taxpayer identification numbers, and ensure they are not subject to backup withholding. Since tax identification number certification was mandated in 1983, many credit unions have incorporated the required certification language into their membership account agreements, as permitted under the substitute W-9 rules, Mr. Mica said. More than two weeks in lead time is needed to modify, print, and distribute revised account agreements for new members.