52.204-3 Taxpayer Identification
Source: FAR 52.204-3 on acquisition.gov
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.
As prescribed in 4.905 , insert the following provision:
Taxpayer Identification (Oct 1998)
(a) Definitions.
Common parent, as used in this provision, means that corporate entity that owns or controls an affiliated group of corporations that files its Federal income tax returns on a consolidated basis, and of which the offeror is a member.
Taxpayer Identification Number (TIN), as used in this provision, means the number required by the Internal Revenue Service (IRS) to be used by the offeror in reporting income tax and other returns. The TIN may be either a Social Security Number or an Employer Identification Number.
(b) All offerors must submit the information required in paragraphs (d) through (f) of this provision to comply with debt collection requirements of http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section7701(c)&num=0&edition=prelim" target="_blank">31 U.S.C. 7701(c) and http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3325&num=0&edition=prelim" target="_blank">3325(d), reporting requirements of http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section6041&num=0&edition=prelim" target="_blank">26 U.S.C.6041, 6041 A, and 6050 M, and implementing regulations issued by the IRS. If the resulting contract is subject to the payment reporting requirements described in Federal Acquisition Regulation (FAR) 4.904, the failure or refusal by the offeror to furnish the information may result in a 31 percent reduction of payments otherwise due under the contract.
(c) The TIN may be used by the Government to collect and report on any delinquent amounts arising out of the offeror’s relationship with the Government (http://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section7701(c)(3)&num=0&edition=prelim" target="_blank">31 U.S.C. 7701(c)(3)). If the resulting contract is subject to the payment reporting requirements described in FAR 4.904, the TIN provided hereunder may be matched with IRS records to verify the accuracy of the offeror’s TIN.
(d) Taxpayer Identification Number (TIN).
□ TIN: __________________.
□ TIN has been applied for.
□ TIN is not required because:
□ Offeror is a nonresident alien, foreign corporation, or foreign partnership that does not have income effectively connected with the conduct of a trade or business in the United States and does not have an office or place of business or a fiscal paying agent in the United States;
□ Offeror is an agency or instrumentality of a foreign government;
□ Offeror is an agency or instrumentality of the Federal Government.
(e) Type of organization.
□ Sole proprietorship;
□ Partnership;
□ Corporate entity (not tax-exempt);
□ Corporate entity (tax-exempt);
□ Government entity (Federal, State, or local);
□ Foreign government;
□ International organization per 26 CFR 1.6049-4;
□ Other__________________.
(f) Common parent.
□ Offeror is not owned or controlled by a common parent as defined in paragraph (a) of this provision.
□ Name and TIN of common parent:
□ Name__________________.
□ TIN__________________.
(End of provision)