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Unapproved Vendor Codes

Most unapproved vendor codes have had a change in their tax status. Some of the unapproved vendors will have a new vendor code displayed in the "Name 2" field, if a new W-9 was received. Please use this vendor code for all future payments.

Vendors may be unapproved by the Controller's Office if they have not fulfilled the requirements under the vendor code policy or concerns arrise.

Penalties and Backup Withholding

Penalties are assessed by the IRS for each vendor the University fails to provide the proper information for. The amount of penalty ranges from $15 to $100 per vendor. The following is a list penalties can be given for:

  • Incorrect FEI or SSN
  • Missing FEI or SSN
  • Incorrect or missing name (name must correspond to IRS records)
  • Illegible forms

Failure of vendors to comply with W-9 requests could result in delay of payment and/or a withholding of about 30%. Vendors are also subject to about 30% backup withholding if any of the following are true:

  • Vendor does not supply a FEI or SSN
  • The IRS has notified the University that the vendor has provided an incorrect FEI or SSN ("B" Notice)
  • The IRS has notified the University that the vendor is subject to backup withholding ("C" Notice)
  • Vendor has completed the W-9
  • FEI with "applied for" status but does not provide the new FEI within 60 days.

 

 

 

 

 


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