52.204-3
Taxpayer Identification
Offerors must provide accurate taxpayer identification and organizational information or risk significant payment reductions under federal contracts.
Overview
FAR 52.204-3, Taxpayer Identification, requires offerors to provide their Taxpayer Identification Number (TIN) and related information as part of their offer. This provision supports federal debt collection and tax reporting requirements, ensuring the government can properly report payments and collect any delinquent debts. Offerors must disclose their TIN, organization type, and whether they are owned by a common parent, or indicate if a TIN is not required due to specific exemptions. Failure to provide this information may result in a 31% reduction of contract payments if the contract is subject to payment reporting requirements.
Key Rules
- TIN Disclosure Requirement
- All offerors must provide their TIN or indicate why a TIN is not required.
- Organization Type Declaration
- Offerors must specify their type of organization (e.g., sole proprietorship, partnership, corporation, government entity).
- Common Parent Information
- If applicable, offerors must disclose the name and TIN of their common parent corporation.
- Consequences for Non-Compliance
- Failure to provide required information may result in a 31% reduction in payments under certain contracts.
Responsibilities
- Contracting Officers: Must include this provision in solicitations as prescribed and ensure offerors provide the required information.
- Contractors/Offerors: Must accurately complete and submit TIN, organization type, and common parent information or claim a valid exemption.
- Agencies: May use TINs to report payments, collect debts, and verify information with the IRS.
Practical Implications
- This provision ensures the government can meet tax reporting and debt collection obligations.
- Offerors must be prepared to provide accurate tax and organizational information or risk payment reductions.
- Common pitfalls include failing to provide a TIN, misunderstanding exemption criteria, or incomplete organizational disclosures.