What is an exempt payee on a W9?

Answer by Wray Rives:

An exempt payee for W9 purposes is any of the following:

  1. An organization exempt from tax under section 501(a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2);
  2. The United States or any of its agencies or instrumentalities;
  3. A state, the District of Columbia, a U.S. commonwealth or possession, or any of their political subdivisions, agencies, or instrumentalities;
  4. A foreign government or any of its political subdivisions, agencies, or instrumentalities;
  5. A corporation;
  6. A dealer in securities or commodities required to register in the United States, the District of Columbia, or a U.S. commonwealth or possession
  7. A futures commission merchant registered with the Commodity Futures Trading Commission
  8. A real estate investment trust;
  9. An entity registered at all times during the tax year under the Investment Company Act of 1940;
  10. A common trust fund operated by a bank under section 584(a);
  11. A financial institution;
  12. A middleman known in the investment community as a nominee or custodian;
  13. A trust exempt from tax under section 664 or described in section 4947.

What is an exempt payee on a W9?