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MORTGAGE BROKER TO MORTGAGE BROKER AGREEMENT This Mortgage Broker to Mortgage Broker Agreement (“Agreement”), is made and entered into ____________________, 2009, by and between: (1) Pyramid Capital Investment Corp., a Delaware corporation, which is a licensed California Department of Real Estate Broker (#01303140), and Department of Corporations State of California License Lender and Broker (#603C743), whose business address is 4500 Campus Dr. #410, Newport Beach, CA 92660 (“PCI”), and (2) _________________________________________, a ___________________, which is a licensed Broker in the state of____________, under _________________________[type of] license (#____________), whose business address is _______________________________________________("Broker", including its' affiliated companies, agents, and assigns). Whereas, Broker originates a wide variety of Mortgage Applications ("Applications") from prospective persons and entities that may wish to borrow money secured by real property ("Borrowers"). Whereas, from time to time, Broker may determine to refer Applications to PCI, so that PCI may determine whether to independently process and submit the Application to Lender(s)/Investor(s) in order to obtain Loan Commitment(s). Whereas, the purpose of this Agreement is to serve as a master agreement governing all Application referrals, which Broker makes to PCI. NOW, THEREFORE, the parties agree as follows: 1. Loan Application Referrals. Broker may refer to PCI, and PCI will consider, Applications originated by Broker from Borrowers seeking mortgage loans. Concurrent with Broker’s referral of an Application package to PCI, Broker shall notify Borrower that the Borrower’s Application package has been referred to PCI. If at any time Broker refers or submits Borrower’s Application to any other Lender(s) / Investor(s) / Mortgage Broker(s), whether made prior to, concurrently, or after the Application is referred to PCI, Broker must immediately notify PCI in writing, and Broker’s failure to provide such notice, may be cause for termination of Broker’s relationship with PCI at PCI’s discretion. PCI shall be free to obtain Applications packages from other brokers or sources without restrictions. 2. Contents of Applications. Applications referred by Broker shall consist at a minimum of a completed loan Application, Borrower authorization form, credit report, income and asset documentation, property comparables and Fannie Mae 3.2 file. It shall be Broker’s duty to perform due diligence on all Borrower(s) information submitted to PCI to ensure that to the best of Broker’s knowledge, Borrower’s information is accurate and not fraudulent. Broker shall be solely responsible for all costs of its origination effort and the charges it incurs for credit report, loan officer compensation, marketing and other costs. PCI shall verify accuracy of all information provided by Broker and Borrower(s) on the Application package. PCI shall perform quality control audits on each Application Package referred to PCI. Broker agrees PCI shall have full authority to contact Borrower(s) directly or indirectly, as PCI deems necessary, for any purpose to help obtain loan approval/commitment. PCI agrees to inform Broker of the compilation of required documentation from borrower, product, pricing and terms, Broker agrees to fully cooperate and assist PCI in gathering of documentation needed to fund loan. 3. Compliance with RESPA. PCI and Broker shall each provide Good Faith Estimates containing disclosures of the fees anticipated by PCI and Broker. Each Application referral to PCI shall constitute a representation and warranty that Broker has performed sufficient services to qualify for compensation under the safe harbor provisions of the Real Estate Settlement Procedures Act (RESPA), including Broker’s taking of the Application and providing at least five out of the following thirteen service categories which qualify Broker under RESPA to be entitled to receive a portion of the compensation payable by Borrower and/or Lender to PCI: A. Initiating/ordering VOE’s (verification of employment) and VOD’s (verifications of Deposits); B. Initiating/ordering requests for mortgage and other loan verifications; C. Initiating/ordering appraisals; D. Initiating/ordering inspections or engineering reports; E. Providing disclosures (truth-in-lending, good faith estimate, others) to the Borrower; F. Ordering legal documents; G. Determining whether the property was located in a flood zone or ordering such service; H. Analyzing the Applicant’s income and debt and pre-qualifying the Applicant to determine the maximum mortgage that the prospective Borrower can afford; I. Educating the Applicant in the home-buying and financing process, advising the Applicant about the different types of loan products available, and demonstrating how closing costs and monthly payments would vary under each product; J. Collecting financial information (tax returns, bank statements) and other relate documents that are part of the application process; K. Assisting the Applicant in underwriting and clearing credit problems; L. Maintaining regular contact with the Applicant, Realtors® and Lender between application and closing to apprise them of the status of the application and to gather any additional information as needed; M. Participating in the loan closing. 1 Initial______ 4. Compensation. Contingent upon the closing of a loan with respect to a referred Application, and the disbursement by Escrow to PCI of its compensation in the transaction, PCI shall pay Broker for its services an individually negotiated fee depending on the scope and quality of the services actually performed by Broker in connection with each referred Application. The fee payment shall be paid directly from the loan escrow when feasible or, if not, then within five business days of PCI’s receipt of such compensation. PCI shall have the absolute discretion as to the amount of compensation to be charged on all loans PCI submits to Lenders. If PCI, in its absolute discretion, allows a Borrower to rescind a loan after funding, or if Lender/Investor calls the loan balance due for any purpose and requires PCI to repurchase the loan, then all parties that have received commissions, shall return their commission and compensation to the extent necessary to accomplish the rescission and/or resolve the issue. 5. Mutual Agreement. Broker may refer to PCI and PCI will consider application for mortgage loans for his/her borrower referred by Broker. PCI agrees to act on the Application(s) diligently and efficiently and to update and communicate with Broker for status of the loan application form time to time. If PCI believes it cannot arrange financing for borrower after review of Application, then PCI shall notify borrower and the Broker about the outcome of the review or suggest an alternate loan product PCI or PCI’s lender/investor has, or decline loan. 6. Non-Circumvention. With respect to Lender(s) to whom PCI has submitted Broker's referred Application(s), Broker and its' affiliated companies, agents, and assigns, hereby agree not to circumvent PCI directly or indirectly by contacting or communicating with PCI’s Lender(s)/Investor(s), its’ affiliates, or Escrow. With respect to PCI’s contacts with Lender(s)/Investor(s), Broker agrees not to submit any Applications or close any Loan(s) with PCI’s Lender(s)/Investor(s) for the next two (2) years, unless Broker can provide strong proof that Broker had a previously existing business relationship with such Lender/Investor, as indicated by the fact commissions were previously paid by the subject Lender/Investor to Broker. PCI, its’ employees, associates, and/or entities hereby agree not to solicit to Broker’s Borrowers referred by Broker directly or indirectly for new business. However, PCI shall be free to contact Borrower for processing and funding loans submitted to PCI by Broker. 7. Confidentiality of Borrowers. Any information provided to PCI by the Broker for any borrower or by the borrower, in documents or applications(s), shall be held confidential, and used solely for the purpose intended and to parties concerned and associated therein. 8. Indemnification. (a) By PCI: PCI shall indemnify and hold Broker and its agent harmless from any and all demands, costs, judgments and claims of any kind (including attorneys fees and court costs) arising out of claims on an Application or resulting Loan arising from the acts or omissions of PCI or its personnel or agents after the referral of an Application to PCI. (b) By Broker: Broker shall indemnify and hold PCI and its agents harmless from any and all demands, costs, judgments and claims of any kind (including attorneys fees and court costs) arising out of claims on an Application or resulting Loan arising from the acts or omissions of Broker or its personnel or agents before the referral of an Application to PCI. 9. General Terms. A. Compliance with Laws. Both parties shall in all of their activities under this Agreement comply with the laws of the state of California and the United States. All activities shall be conducted in strict accordance with the California Real Estate Law applicable to real estate brokers. If either party’s real estate broker’s license ceases to be in good standing, that party shall immediately notify the other in writing. B. Arbitration Agreements with Applicants. PCI shall require all Applicants to execute an arbitration agreement requiring the Applicant to arbitrate any and all claims the Applicant may have with PCI, the Lender and any other broker in the transaction, including Broker. If an Applicant initiates arbitration with PCI, Broker stipulates to join in such arbitration if it is named in the claim or has a cross-claim against PCI. C. Arbitration of Disputes. The parties agree that any dispute between them shall be decided by binding arbitration under the rules of the American Arbitration Association. The prevailing party shall be entitled to an award of its attorney and accounting fees from the losing party and arbitration costs. All hearings shall be in the County of Orange unless otherwise agreed or ordered by the arbitrator(s). Limited discovery shall be conducted in the discretion of the arbitrator(s). D. Applicable Law. This Agreement shall be construed under the laws of the State of California, without giving effect to the principles of conflicts of laws. E. Attorneys' Fees: If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, or to collect any fees or costs due under this Agreement, the prevailing party shall be entitled to reasonable attorneys' fees and costs, in addition to any other relief to which he may be entitled F. Status of Parties. The parties are independent contractors not the partners, joint venturers or agents of the other. Neither party has any power to bind or to represent the other. PCI is not the agent of any Applicant. G. Termination. This Agreement shall be in effect and continue for each loan referred or submitted to PCI by Broker until mutually agreed by both parties to terminate. 2 Initial______ H. Integrated Agreement. This Agreement constitutes an integrated agreement between the parties and supercedes all previous agreements and negotiations. It shall be construed as if drafted by both parties. This Agreement may only be modified or waived by an agreement in writing. I. Severability. In the event that any part or portion of this Agreement is held invalid or unlawful through any administrative, quasi-judicial, or judicial proceeding, the invalidity or illegality thereof shall not effect the validity of this Agreement as a whole, and the other provisions and terms contained herein shall remain in full force and effect as if the illegal or invalid provision had been eliminated. J. Advice of Counsel: Each party to this Agreement acknowledges that in executing this Agreement, such party has had the opportunity to seek the advice of independent legal counsel, and has read and understands all of the terms and provisions of this Agreement. This Agreement shall not be construed against any party by reason of the drafting or preparation hereof. K. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument. A facsimile signature shall have the same force and effect as an original signature. L. Sole Agreement / No Contravening Agreements. This Agreement, including any Exhibits hereto, constitutes the sole and entire agreement of the parties with respect to the subject matter hereof and superceds all oral negotiations and prior writings. This Agreement applies to each and every referral of Borrower Application(s) or loan submissions by Broker to PCI. This Agreement may not be altered or modified except by a writing signed by both parties. Each of the parties hereby represents to the other that, as of the effective date of this Agreement, that they are not presently a party to any contract or agreement that contravenes any of the terms, provisions, purposes or intent of this Agreement. PRINTING MUST BE LEGIBLE. PCI: BROKER: PYRAMID CAPITAL INVESTMENTS CORP. _________________________________ a Delaware corporation a ________________________ By: _____________________________ By: ______________________________ Schram Rod Print Name: _______________________ Its: President Its: ______________________________ 4500 Campus Dr., Suite 410 Address: __________________________ Newport Beach, CA 92660 __________________________________ Phone: (949) 833-8747 Phone: ____________________________ Fax: (949) 833-8233 Fax: ______________________________ Email: firstname.lastname@example.org Email:_____________________________ 3 Initial______ Form (Rev. October 2007) W-9 Request for Taxpayer Give form to the requester. Do not Department of the Treasury Identification Number and Certification send to the IRS. Internal Revenue Service Name (as shown on your income tax return) See Specific Instructions on page 2. Business name, if different from above Print or type Check appropriate box: Individual/Sole proprietor Corporation Partnership Exempt Limited liability company. Enter the tax classification (D=disregarded entity, C=corporation, P=partnership) payee Other (see instructions) Address (number, street, and apt. or suite no.) Requester’s name and address (optional) City, state, and ZIP code List account number(s) here (optional) Part I Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on Line 1 to avoid Social security number backup withholding. For individuals, this is your social security number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3. or Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose Employer identification number number to enter. Part II Certification Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2. I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding, and 3. I am a U.S. citizen or other U.S. person (defined below). Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the Certification, but you must provide your correct TIN. See the instructions on page 4. Sign Signature of Here U.S. person Date General Instructions Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are: Section references are to the Internal Revenue Code unless otherwise noted. ● An individual who is a U.S. citizen or U.S. resident alien, ● A partnership, corporation, company, or association created or Purpose of Form organized in the United States or under the laws of the United A person who is required to file an information return with the States, IRS must obtain your correct taxpayer identification number (TIN) ● An estate (other than a foreign estate), or to report, for example, income paid to you, real estate ● A domestic trust (as defined in Regulations section transactions, mortgage interest you paid, acquisition or 301.7701-7). abandonment of secured property, cancellation of debt, or Special rules for partnerships. Partnerships that conduct a contributions you made to an IRA. trade or business in the United States are generally required to Use Form W-9 only if you are a U.S. person (including a pay a withholding tax on any foreign partners’ share of income resident alien), to provide your correct TIN to the person from such business. Further, in certain cases where a Form W-9 requesting it (the requester) and, when applicable, to: has not been received, a partnership is required to presume that 1. Certify that the TIN you are giving is correct (or you are a partner is a foreign person, and pay the withholding tax. waiting for a number to be issued), Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, 2. Certify that you are not subject to backup withholding, or provide Form W-9 to the partnership to establish your U.S. 3. Claim exemption from backup withholding if you are a U.S. status and avoid withholding on your share of partnership exempt payee. If applicable, you are also certifying that as a income. U.S. person, your allocable share of any partnership income from The person who gives Form W-9 to the partnership for a U.S. trade or business is not subject to the withholding tax on purposes of establishing its U.S. status and avoiding withholding foreign partners’ share of effectively connected income. on its allocable share of net income from the partnership Note. If a requester gives you a form other than Form W-9 to conducting a trade or business in the United States is in the request your TIN, you must use the requester’s form if it is following cases: substantially similar to this Form W-9. ● The U.S. owner of a disregarded entity and not the entity, Cat. No. 10231X Form W-9 (Rev. 10-2007) Form W-9 (Rev. 10-2007) Page 2 ● The U.S. grantor or other owner of a grantor trust and not the 4. The IRS tells you that you are subject to backup trust, and withholding because you did not report all your interest and ● The U.S. trust (other than a grantor trust) and not the dividends on your tax return (for reportable interest and beneficiaries of the trust. dividends only), or Foreign person. If you are a foreign person, do not use Form 5. You do not certify to the requester that you are not subject W-9. Instead, use the appropriate Form W-8 (see Publication to backup withholding under 4 above (for reportable interest and 515, Withholding of Tax on Nonresident Aliens and Foreign dividend accounts opened after 1983 only). Entities). Certain payees and payments are exempt from backup withholding. See the instructions below and the separate Nonresident alien who becomes a resident alien. Generally, Instructions for the Requester of Form W-9. only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. tax on certain types of income. Also see Special rules for partnerships on page 1. However, most tax treaties contain a provision known as a “saving clause.” Exceptions specified in the saving clause may Penalties permit an exemption from tax to continue for certain types of Failure to furnish TIN. If you fail to furnish your correct TIN to a income even after the payee has otherwise become a U.S. requester, you are subject to a penalty of $50 for each such resident alien for tax purposes. failure unless your failure is due to reasonable cause and not to If you are a U.S. resident alien who is relying on an exception willful neglect. contained in the saving clause of a tax treaty to claim an Civil penalty for false information with respect to exemption from U.S. tax on certain types of income, you must withholding. If you make a false statement with no reasonable attach a statement to Form W-9 that specifies the following five basis that results in no backup withholding, you are subject to a items: $500 penalty. 1. The treaty country. Generally, this must be the same treaty Criminal penalty for falsifying information. Willfully falsifying under which you claimed exemption from tax as a nonresident certifications or affirmations may subject you to criminal alien. penalties including fines and/or imprisonment. 2. The treaty article addressing the income. Misuse of TINs. If the requester discloses or uses TINs in 3. The article number (or location) in the tax treaty that violation of federal law, the requester may be subject to civil and contains the saving clause and its exceptions. criminal penalties. 4. The type and amount of income that qualifies for the exemption from tax. Specific Instructions 5. Sufficient facts to justify the exemption from tax under the Name terms of the treaty article. Example. Article 20 of the U.S.-China income tax treaty allows If you are an individual, you must generally enter the name an exemption from tax for scholarship income received by a shown on your income tax return. However, if you have changed Chinese student temporarily present in the United States. Under your last name, for instance, due to marriage without informing U.S. law, this student will become a resident alien for tax the Social Security Administration of the name change, enter purposes if his or her stay in the United States exceeds 5 your first name, the last name shown on your social security calendar years. However, paragraph 2 of the first Protocol to the card, and your new last name. U.S.-China treaty (dated April 30, 1984) allows the provisions of If the account is in joint names, list first, and then circle, the Article 20 to continue to apply even after the Chinese student name of the person or entity whose number you entered in Part I becomes a resident alien of the United States. A Chinese of the form. student who qualifies for this exception (under paragraph 2 of Sole proprietor. Enter your individual name as shown on your the first protocol) and is relying on this exception to claim an income tax return on the “Name” line. You may enter your exemption from tax on his or her scholarship or fellowship business, trade, or “doing business as (DBA)” name on the income would attach to Form W-9 a statement that includes the “Business name” line. information described above to support that exemption. Limited liability company (LLC). Check the “Limited liability If you are a nonresident alien or a foreign entity not subject to company” box only and enter the appropriate code for the tax backup withholding, give the requester the appropriate classification (“D” for disregarded entity, “C” for corporation, “P” completed Form W-8. for partnership) in the space provided. What is backup withholding? Persons making certain payments For a single-member LLC (including a foreign LLC with a to you must under certain conditions withhold and pay to the domestic owner) that is disregarded as an entity separate from IRS 28% of such payments. This is called “backup withholding.” its owner under Regulations section 301.7701-3, enter the Payments that may be subject to backup withholding include owner’s name on the “Name” line. Enter the LLC’s name on the interest, tax-exempt interest, dividends, broker and barter “Business name” line. exchange transactions, rents, royalties, nonemployee pay, and certain payments from fishing boat operators. Real estate For an LLC classified as a partnership or a corporation, enter transactions are not subject to backup withholding. the LLC’s name on the “Name” line and any business, trade, or DBA name on the “Business name” line. You will not be subject to backup withholding on payments you receive if you give the requester your correct TIN, make the Other entities. Enter your business name as shown on required proper certifications, and report all your taxable interest and federal tax documents on the “Name” line. This name should dividends on your tax return. match the name shown on the charter or other legal document creating the entity. You may enter any business, trade, or DBA Payments you receive will be subject to backup name on the “Business name” line. withholding if: Note. You are requested to check the appropriate box for your 1. You do not furnish your TIN to the requester, status (individual/sole proprietor, corporation, etc.). 2. You do not certify your TIN when required (see the Part II Exempt Payee instructions on page 3 for details), 3. The IRS tells the requester that you furnished an incorrect If you are exempt from backup withholding, enter your name as TIN, described above and check the appropriate box for your status, then check the “Exempt payee” box in the line following the business name, sign and date the form. Form W-9 (Rev. 10-2007) Page 3 Generally, individuals (including sole proprietors) are not exempt Part I. Taxpayer Identification from backup withholding. Corporations are exempt from backup withholding for certain payments, such as interest and dividends. Number (TIN) Note. If you are exempt from backup withholding, you should Enter your TIN in the appropriate box. If you are a resident still complete this form to avoid possible erroneous backup alien and you do not have and are not eligible to get an SSN, withholding. your TIN is your IRS individual taxpayer identification number The following payees are exempt from backup withholding: (ITIN). Enter it in the social security number box. If you do not have an ITIN, see How to get a TIN below. 1. An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account If you are a sole proprietor and you have an EIN, you may satisfies the requirements of section 401(f)(2), enter either your SSN or EIN. However, the IRS prefers that you use your SSN. 2. The United States or any of its agencies or If you are a single-member LLC that is disregarded as an instrumentalities, entity separate from its owner (see Limited liability company 3. A state, the District of Columbia, a possession of the United (LLC) on page 2), enter the owner’s SSN (or EIN, if the owner States, or any of their political subdivisions or instrumentalities, has one). Do not enter the disregarded entity’s EIN. If the LLC is 4. A foreign government or any of its political subdivisions, classified as a corporation or partnership, enter the entity’s EIN. agencies, or instrumentalities, or Note. See the chart on page 4 for further clarification of name 5. An international organization or any of its agencies or and TIN combinations. instrumentalities. How to get a TIN. If you do not have a TIN, apply for one immediately. To apply for an SSN, get Form SS-5, Application Other payees that may be exempt from backup withholding for a Social Security Card, from your local Social Security include: Administration office or get this form online at www.ssa.gov. You 6. A corporation, may also get this form by calling 1-800-772-1213. Use Form 7. A foreign central bank of issue, W-7, Application for IRS Individual Taxpayer Identification 8. A dealer in securities or commodities required to register in Number, to apply for an ITIN, or Form SS-4, Application for the United States, the District of Columbia, or a possession of Employer Identification Number, to apply for an EIN. You can the United States, apply for an EIN online by accessing the IRS website at www.irs.gov/businesses and clicking on Employer Identification 9. A futures commission merchant registered with the Number (EIN) under Starting a Business. You can get Forms W-7 Commodity Futures Trading Commission, and SS-4 from the IRS by visiting www.irs.gov or by calling 10. A real estate investment trust, 1-800-TAX-FORM (1-800-829-3676). 11. An entity registered at all times during the tax year under If you are asked to complete Form W-9 but do not have a TIN, the Investment Company Act of 1940, write “Applied For” in the space for the TIN, sign and date the form, and give it to the requester. For interest and dividend 12. A common trust fund operated by a bank under section payments, and certain payments made with respect to readily 584(a), tradable instruments, generally you will have 60 days to get a 13. A financial institution, TIN and give it to the requester before you are subject to backup 14. A middleman known in the investment community as a withholding on payments. The 60-day rule does not apply to nominee or custodian, or other types of payments. You will be subject to backup withholding on all such payments until you provide your TIN to 15. A trust exempt from tax under section 664 or described in the requester. section 4947. Note. Entering “Applied For” means that you have already The chart below shows types of payments that may be applied for a TIN or that you intend to apply for one soon. exempt from backup withholding. The chart applies to the Caution: A disregarded domestic entity that has a foreign owner exempt payees listed above, 1 through 15. must use the appropriate Form W-8. IF the payment is for . . . THEN the payment is exempt Part II. Certification for . . . To establish to the withholding agent that you are a U.S. person, Interest and dividend payments All exempt payees except or resident alien, sign Form W-9. You may be requested to sign for 9 by the withholding agent even if items 1, 4, and 5 below indicate Broker transactions Exempt payees 1 through 13. otherwise. Also, a person registered under For a joint account, only the person whose TIN is shown in the Investment Advisers Act of Part I should sign (when required). Exempt payees, see Exempt 1940 who regularly acts as a Payee on page 2. broker Signature requirements. Complete the certification as indicated Barter exchange transactions Exempt payees 1 through 5 in 1 through 5 below. and patronage dividends 1. Interest, dividend, and barter exchange accounts opened before 1984 and broker accounts considered active Payments over $600 required Generally, exempt payees 2 during 1983. You must give your correct TIN, but you do not to be reported and direct 1 through 7 have to sign the certification. 1 sales over $5,000 2. Interest, dividend, broker, and barter exchange 1 accounts opened after 1983 and broker accounts considered See Form 1099-MISC, Miscellaneous Income, and its instructions. 2 inactive during 1983. You must sign the certification or backup However, the following payments made to a corporation (including gross proceeds paid to an attorney under section 6045(f), even if the attorney is a withholding will apply. If you are subject to backup withholding corporation) and reportable on Form 1099-MISC are not exempt from and you are merely providing your correct TIN to the requester, backup withholding: medical and health care payments, attorneys’ fees, and you must cross out item 2 in the certification before signing the payments for services paid by a federal executive agency. form. Form W-9 (Rev. 10-2007) Page 4 3. Real estate transactions. You must sign the certification. Secure Your Tax Records from Identity Theft You may cross out item 2 of the certification. Identity theft occurs when someone uses your personal 4. Other payments. You must give your correct TIN, but you information such as your name, social security number (SSN), or do not have to sign the certification unless you have been other identifying information, without your permission, to commit notified that you have previously given an incorrect TIN. “Other fraud or other crimes. An identity thief may use your SSN to get payments” include payments made in the course of the a job or may file a tax return using your SSN to receive a refund. requester’s trade or business for rents, royalties, goods (other than bills for merchandise), medical and health care services To reduce your risk: (including payments to corporations), payments to a ● Protect your SSN, nonemployee for services, payments to certain fishing boat crew ● Ensure your employer is protecting your SSN, and members and fishermen, and gross proceeds paid to attorneys ● Be careful when choosing a tax preparer. (including payments to corporations). Call the IRS at 1-800-829-1040 if you think your identity has 5. Mortgage interest paid by you, acquisition or been used inappropriately for tax purposes. abandonment of secured property, cancellation of debt, qualified tuition program payments (under section 529), IRA, Victims of identity theft who are experiencing economic harm Coverdell ESA, Archer MSA or HSA contributions or or a system problem, or are seeking help in resolving tax distributions, and pension distributions. You must give your problems that have not been resolved through normal channels, correct TIN, but you do not have to sign the certification. may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach TAS by calling the TAS toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. What Name and Number To Give the Requester Protect yourself from suspicious emails or phishing For this type of account: Give name and SSN of: schemes. Phishing is the creation and use of email and websites designed to mimic legitimate business emails and 1. Individual The individual websites. The most common act is sending an email to a user 2. Two or more individuals (joint The actual owner of the account or, account) if combined funds, the first falsely claiming to be an established legitimate enterprise in an individual on the account 1 attempt to scam the user into surrendering private information 3. Custodian account of a minor The minor 2 that will be used for identity theft. (Uniform Gift to Minors Act) 1 The IRS does not initiate contacts with taxpayers via emails. 4. a. The usual revocable savings The grantor-trustee Also, the IRS does not request personal detailed information trust (grantor is also trustee) through email or ask taxpayers for the PIN numbers, passwords, 1 b. So-called trust account that is The actual owner or similar secret access information for their credit card, bank, or not a legal or valid trust under other financial accounts. state law 5. Sole proprietorship or disregarded The owner 3 If you receive an unsolicited email claiming to be from the IRS, entity owned by an individual forward this message to email@example.com. You may also report Give name and EIN of: misuse of the IRS name, logo, or other IRS personal property to For this type of account: the Treasury Inspector General for Tax Administration at 6. Disregarded entity not owned by an The owner 1-800-366-4484. You can forward suspicious emails to the individual Federal Trade Commission at: firstname.lastname@example.org or contact them at 4 7. A valid trust, estate, or pension trust Legal entity www.consumer.gov/idtheft or 1-877-IDTHEFT(438-4338). 8. Corporate or LLC electing The corporation corporate status on Form 8832 Visit the IRS website at www.irs.gov to learn more about 9. Association, club, religious, The organization identity theft and how to reduce your risk. charitable, educational, or other tax-exempt organization 10. Partnership or multi-member LLC The partnership 11. A broker or registered nominee The broker or nominee 12. Account with the Department of The public entity Agriculture in the name of a public entity (such as a state or local government, school district, or prison) that receives agricultural program payments 1 List first and circle the name of the person whose number you furnish. If only one person on a joint account has an SSN, that person’s number must be furnished. 2 Circle the minor’s name and furnish the minor’s SSN. 3 You must show your individual name and you may also enter your business or “DBA” name on the second name line. You may use either your SSN or EIN (if you have one), but the IRS encourages you to use your SSN. 4 List first and circle the name of the trust, estate, or pension trust. (Do not furnish the TIN of the personal representative or trustee unless the legal entity itself is not designated in the account title.) Also see Special rules for partnerships on page 1. Note. If no name is circled when more than one name is listed, the number will be considered to be that of the first name listed. Privacy Act Notice Section 6109 of the Internal Revenue Code requires you to provide 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, cancellation of debt, or contributions you made to an IRA, or Archer MSA or HSA. The IRS uses the numbers for identification purposes and to help verify the accuracy of your tax return. The IRS may also provide this information to the Department of Justice for civil and criminal litigation, and to cities, states, the District of Columbia, and U.S. possessions to carry out their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. You must provide your TIN whether or not you are required to file a tax return. Payers must generally withhold 28% of taxable interest, dividend, and certain other payments to a payee who does not give a TIN to a payer. Certain penalties may also apply.
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