W-9 Submission Requirement
As of 2022, the Internal Revenue Services (IRS) requires state agencies to report to the IRS respondents’ expenditures of $50,000 or greater that are made as result of an order, adjudication, settlement agreement, or otherwise pursuant to 26 CFR § 1.6050X-1. DEEP is required to report on all of respondents’ costs in instances where the total cost of compliance could potentially exceed the $50,000 threshold; this includes not only civil penalties that exceed this amount, but the cumulative value of all costs associated with compliance, such as hiring a consultant, performing supplemental environmental projects, remediating environmental harm, the removal of an unauthorized structure, or any other action that costs money and is required of a respondent by DEEP.
In order to comply with the federal reporting requirements as outlined above, DEEP may require respondents to submit completed IRS W-9 forms in order to obtain their tax identification numbers. DEEP does not make formal estimates of the potential cost of compliance for projects and, for certain programs, requires all respondents to submit W-9 forms in order to ensure the Department’s compliance with federal law. Under the Internal Revenue Code (26 USC § 6109(a)(2)), respondents are required to furnish their tax identification numbers to the Department and a failure to do so may subject respondents to penalties under 27 CFR § 70.113.
Once DEEP is in possession of respondents’ completed W-9 forms, the Department may send the forms to the Connecticut Office of the State Comptroller, which is responsible for reporting to the IRS on such matters for all Connecticut agencies. Respondents may receive an IRS form 1098-F from the Office of the State Comptroller referencing the same costs of compliance that may have triggered the requirement for respondents to submit a W-9. Any reference to penalties or costs of compliance on the 1098-F form refers to those already agreed to between the Department and the respondent; they are not new or additional costs. Respondents are responsible for completing this form and sending it to the Office of the State Comptroller.
For more information, please see the following links:
- IRS FORM W-9: About Form W-9, Request for Taxpayer Identification Number and Certification | Internal Revenue Service (irs.gov)
- IRS FORM 1098-F: About Form 1098-F, Fines Penalties, and Other Amounts | Internal Revenue Service (irs.gov)
- FAQ on 26 USC § 6050X reporting requirement: Questions and Answers About the Reporting Requirement Under Section 6050X | Internal Revenue Service (irs.gov)
Content last updated July 2, 2024