TO: Requester of Taxpayer EIN via Form W-9
SUBJECT: Amounts withheld under Chapter 13 Bankruptcy
Request for Employer Identification Number
This letter is being sent to you because you forwarded to this office an IRS W-9 (request for taxpayer identification number and certification). Presumably, this request is being sent because an assumption has been made that your business or organization has sent funds to this office as a law office or because of the assumption that this office provides legal services. Neither of these assumptions is correct.
This office is strictly an office of a Chapter 13 (and Chapter 12) Standing Trustee and accordingly funds sent to us in our capacity as standing trustee are not for services, legal or otherwise, but are trustee funds for distribution to creditors. Furthermore, this office, as a Standing Chapter 13 Trustee office is exempt from Federal income taxes in any case, pursuant to IRS Code Sec. 501(c)(1).
For the above reasons, we conclude that your request for a taxpayer identification number is not appropriate and therefore we will not be furnishing this information.
We understand your concern in complying with the Internal Revenue Code. However, we are administering an individual case pursuant to the Bankruptcy Plan approved by the Court. A portion of the debtor’s compensation is sent to our office to be paid to the payee’s creditors on his or her behalf. All amounts sent to us for distribution should be properly reported on your employee’s Form W‑2 (or Form 1099) as part of the taxable wages of the payee. As such, these amounts are properly reported under the payee’s social security number rather than under the employer identification number assigned to this office.
You are welcome to call about this if you have any questions, however, please do not send anymore requests for our taxpayer identification number.
Thank you for your attention to this matter.