October 16, 1989
TO: TAX MEMBERS NO. 40-89
UNIT INVESTMENT TRUST MEMBERS NO. 55-89
CLOSED-END FUND MEMBERS NO. 54-89
OPERATIONS MEMBERS NO. 31-89
TRANSFER AGENT SHAREHOLDER ADVISORY COMMITTEE NO. 26-89
RE: NOTICE OF POTENTIAL BACKUP WITHHOLDING
__________________________________________________________
As we previously informed you, this April the Internal
Revenue Service issued temporary regulations amending the
temporary regulations issued in November l987 which, among other
things, provided rules for imposing backup withholding following
receipt of a "B Notice" from the IRS that payees had provided
incorrect taxpayer identification numbers (TINs). (See Institute
Memorandum to Tax Members No. 14-89, Unit Investment Trust
Members No. 22-89, Closed-End Fund Members No. 18-89, Operations
Members No. 15-89, and Transfer Agent Shareholder Advisory
Committee No. 9-89, dated April 18, 1989.)
One change made by the April regulations was a revision to
the notice that payors send to payees to inform the payees that
documents in addition to the Form W-9 may need to be sent to the
payor to change a TIN or name (or both) on an account. Attached
is the recently issued notice prepared by the IRS that
incorporates the changes made by the April regulations.
As you know, the IRS has delayed the mailing of B Notices
for 1988 information returns until 1990. (See Institute
Memorandum to Tax Members No. 34-89, Unit Investment Trust
Members No. 51-89, Closed-End Fund Members No. 46-89, Operations
Members No. 30-89, and Transfer Agent Shareholder Advisory
Committee No. 25-89, dated October 4, l989.)
We will keep you informed of developments.
Keith D. Lawson
Assistant General Counsel
Attachment