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Taxpayer Identification and Backup Withholding

The Bryn Mawr Trust Company (the Bank) is required to file an information return with the Internal Revenue Service (IRS) and must obtain your correct taxpayer identification number (TIN) to report income paid to you on your account. The signature card that you sign to open your account is used to furnish the Bank with your correct TIN, and when applicable: 1) to certify that the TIN you are furnishing is correct (or that you are waiting for a number to be issued); 2) to certify that you are not subject to backup withholding; and 3) to claim exemption from backup withholding if you are an exempt payee. Furnishing your correct TIN and making the appropriate certifications will prevent certain payments from being subject to the federally mandated backup withholding requirement.

What is Backup Withholding?

Persons, including BMT, making certain payments to you are required to withhold and pay to the IRS a certain percentage of such payments under certain conditions. This is called “backup withholding.” Payments that could be subject to backup withholding include interest, dividends, broker and barter exchange transactions, rents, royalties, non-employee compensation, and certain payments from fishing boat operators, but do not include real estate transactions.

If you give BMT the correct TIN, make the appropriate certifications, and report all your taxable interest and dividends on your tax return, your payments will not be subject to backup withholding. Payments you receive will be subject to backup withholding if:

  1. You do not furnish your TIN to the Bank, or
  2. IRS notifies the Bank that you furnished an incorrect TIN, or
  3. You are notified by the IRS that you are subject to backup withholding because you failed to report all your interest and dividends on your tax return (for interest and dividend accounts only), or
  4. You fail to certify to the Bank that you are not subject to backup withholding under (3) above (for interest and dividend accounts opened after 1983 only), or
  5. You fail to certify your TIN. This applies only to interest, dividend, broker, or barter exchange accounts opened after 1983, or broker accounts considered inactive in 1983.

Privacy Act Notice

Section 6109 requires you to furnish your correct TIN to persons who must file information returns with the IRS to report interest, dividends, and certain other income paid to you, mortgage interest you paid, the acquisition or abandonment of secured property, or contributions you made to an individual retirement arrangement (IRA). The IRS uses the numbers for identification purposes and to help verify the accuracy of your tax return. You must provide your TIN whether or not you are required to file a tax return. Payers must generally withhold a certain percentage of taxable interest, dividend, and certain other payments to a payee who does not furnish a TIN to a payer. Certain penalties may also apply.