18 Miss. Code. R. 17-8.18 - Tax Identification

A. MDHS shall only issue payments through the CCPP to the individual or entity attached to the Employee Identification Number (EIN), also referred to as the Tax Identification Number (TIN) or Social Security Number (SSN) on record.

B. The TIN or SSN is required by the Internal Revenue Services for tax purposes, and the provider elects which of the two identifying numbers to provide.

C. If a provider elects to change from an EIN/TIN to a SSN, MDHS shall only approve the change if there is no lien or levy against the EIN/TIN of record.

D. MDHS shall not approve an application for an individual or center to become a CCPP-approved provider if information on the W-9 is missing or incorrect. The W-9 must be signed and dated in order to be complete.

E. If a CCPP-approved provider has a missing or incorrect TIN, MDHS shall deduct the Backup Withholding (BWH-B) Rate of 28 percent from future payments through the CCPP program until the correct TIN or name is supplied to MDHS. A TIN shall be considered to be missing or incorrect if it is not provided, has more or less than nine numbers, has an alpha character as one of the nine positions, or is in an improper format with a NAME/TIN combination that does not match or cannot be found in IRS or SSA files.

F. If a CCPP-approved provider has a missing TIN, MDHS shall notify the provider via certified mail and immediately apply backup withholding until a W-9/TIN is supplied.

G. If a CCPP-approved provider has an incorrect name/TIN, MDHS shall send via certified mail a First B-Notice and a W-9 form. The envelope shall be clearly marked that important tax information is enclosed. The provider shall be given thirty (30) business days to respond to complete the W-9 with a correct name/TIN. Failure to respond to the first B-Notice within thirty (30) business days will result in immediate backup withholding until the completed W-9 is returned.

H. If MDHS receives a second notification from the IRS within a three-year period that the provider TIN is incorrect, MDHS shall issue a Second B Notice to the provider. The Second B Notice shall not include a copy of the W-9. The provider shall be given thirty (30) business days to provide MDHS with a copy of his or her Social Security Card or a 147C. Failure to respond to the second B-Notice within thirty (30) business days shall result in immediate backup withholding until the documentation is provided.

I. Tax-exempt organizations, government agencies, and corporations may be exempt from backup withholding according to IRS regulation. MDHS shall keep a record of withholdings in order to submit an Annual Return of Withheld Federal Income Tax Form 945 to the IRS.

Notes

18 Miss. Code. R. 17-8.18

45 CFR 98.56; Miss. Code Ann. § 43-1-2(4); Miss. Code Ann. § 43-1-4 Revised: March 2020

Adopted 5/15/2023