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Is it necessary to obtain a W-9 form for a secondary owner of a joint deposit account? Any interest earned is reported under the primary owner’s name and social security number (SSN). Our vendor’s account opening forms have a spot for the primary owner to sign the certification, but not the secondary owner. – IBA Compliance Connection

IBA Compliance Connection

Your go to source for compliance!

Is it necessary to obtain a W-9 form for a secondary owner of a joint deposit account? Any interest earned is reported under the primary owner’s name and social security number (SSN). Our vendor’s account opening forms have a spot for the primary owner to sign the certification, but not the secondary owner.

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No, the general rule is that it is unnecessary to request a W-9 form from a secondary accountholder — unless all of the accountholders are nonresident aliens. This is because secondary accountholders will not be receiving any interest and consequently will not be subject to any IRS withholding or reporting requirements. However, if all of the joint accountholders are nonresident aliens, then we recommend obtaining W-8BEN forms from all of the joint accountholders.

For resources related to our guidance, please see:

  • IRS Form W-9, page 5 (The table shows that for an account held by “two or more individuals (joint account) other than an account maintained by an FFI [foreign financial institution],” provide the name and SSN of “the actual owner of the account or, if combined funds, the first individual on the account. . . . If only one person on a joint account has an SSN, that person’s number must be furnished.”)
  • IRS Form W-8BEN Instructions (“If you own the income or account jointly with one or more other persons, the income or account will be treated by the withholding agent as owned by a foreign person that is a beneficial owner of a payment only if Forms W-8BEN or W-8BEN-E are provided by all of the owners. If the withholding agent or financial institution receives a Form W-9 from any of the joint owners, however, the payment must be treated as made to a U.S. person and the account treated as a U.S. account.”)
  • IRS Form W-8BEN Instructions (“Foreign person. A foreign person includes a nonresident alien individual and certain foreign entities that are not U.S. persons (entities should complete Form W-8BEN-E rather than this Form W-8BEN).”)