Mississippi Administrative Code › Title 18 - HUMAN SERVICES › Part 17 - Division of Early Childhood Care and Development Child Care Payment Program Policy Manual › Chapter 8 - Procedures After Approval of a Certificate › Rule 18-17-8.18 - Tax Identification

Current through June 25, 2024
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.
45 CFR
				  98.56; Miss. Code Ann. §
										43-1-2(4); Miss.
				  Code Ann. §
										43-1-4 Revised: March
				  2020