Is a Tax Exhibit an IRS form?

No. A Tax Exhibit is a supplemental document used to capture tax-related data; it supports preparation of IRS forms like W-9 or 1099 but is not filed with the IRS itself.

Can a Tax Exhibit be signed electronically?

Yes. Electronic signatures are legally valid in the United States under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention are satisfied.

When does backup withholding apply?

Backup withholding at 24% applies when the payee fails to provide a correct TIN or if the IRS notifies the payer that withholding is required; ensure accurate TIN entry to avoid withholding.

Do exhibits require notarization or witnesses?

Generally no for tax exhibits, but specific agreements or state rules may require notarization or witnesses in particular transactions; verify state or contract-specific requirements before execution.

How long must I keep signed exhibits?

Retain exhibits at least three years to satisfy IRS recordkeeping (IRC §6501(a)); certain industries require longer retention, and HIPAA records must be kept six years (45 CFR §164.530(j)).

What happens if the TIN is wrong?

An incorrect TIN can trigger IRS mismatch notices, delayed payments, and backup withholding. Reconcile TINs promptly and request corrected exhibits or W-9s when issues arise.

Tax Exhibit

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

TAX EXHIBIT

This Tax Exhibit is submitted by the taxpayer identified below for the purpose of certifying taxpayer identification and providing required tax-related certifications under applicable federal tax law.

Taxpayer Identification

Taxpayer Name:

Business Name / DBA (if applicable) Mailing Address

Entity Type

Select the taxpayer's entity classification (check all that apply):

Individual / Sole Proprietor C Corporation S Corporation

Partnership Trust / Estate LLC

Other

Taxpayer Identification Number (TIN)

Provide either a Social Security Number (SSN) or an Employer Identification Number (EIN). Do not enter both.

Social Security Number:

Employer Identification Number (EIN):

Certification

By signing below, under penalties of perjury, the taxpayer certifies the following:

1. The taxpayer identification number provided above is the correct taxpayer identification number of the person identified in this Tax Exhibit or the taxpayer is awaiting issuance of a number.

2. The taxpayer is not subject to backup withholding due to failure to report interest or dividends, unless the taxpayer has been notified that they are subject to backup withholding and such notification has not been rescinded.

3. The taxpayer is a U.S. person (including a U.S. resident alien) for U.S. federal tax purposes, unless the taxpayer has otherwise indicated in writing on or attached to this form.

4. The taxpayer will promptly notify the requester in writing if the information furnished in this Tax Exhibit becomes incorrect.

5. The taxpayer acknowledges that providing false information or failure to provide required information may result in penalties, including those under applicable federal law.

Additional Declarations

Backup Withholding Status: Exempt from backup withholding

Authorized Tax Contact (optional) Authorized Contact Phone Supporting Information (if required)

Certification: I declare under penalties of perjury that I am authorized to sign on behalf of the taxpayer identified above and that the information provided on this Tax Exhibit is true, correct and complete.

Taxpayer Printed Name:

Signature:

Date:

What the Tax Exhibit Is and when it’s used

A Tax Exhibit is a supplemental document attached to contracts, closing packages, vendor onboarding, or payment authorizations that collects tax-related data required for reporting and withholding. Typical entries include payor and payee legal names, taxpayer identification numbers (TINs), entity classification, and withholding instructions. It is not a substitute for IRS forms such as a W-9 or 1099, but it formally documents the tax details parties exchange to support correct IRS reporting, backup withholding decisions, and audit trails.

Why a clear Tax Exhibit matters for compliance

A well-prepared Tax Exhibit reduces reporting errors, documents TIN and classification evidence for 1099 reporting, and helps avoid backup withholding and penalties under the Internal Revenue Code. It also creates a reproducible record useful in audits and vendor due diligence.

Who commonly prepares and signs a Tax Exhibit

The Tax Exhibit is typically completed by finance, payroll, procurement, or legal teams when onboarding payees or closing transactions.

Accounts payable teams responsible for vendor setup and 1099 reporting
Tax preparers and payroll administrators verifying TIN and withholding status
Independent contractors and vendors supplying payee tax information

Multiple internal and external stakeholders rely on the exhibit to ensure correct IRS reporting, streamline payments, and preserve a defensible audit trail.

Step-by-step: completing and delivering the Tax Exhibit

Follow these discrete steps to ensure accuracy and a reproducible record for reporting and audits.

01

Prepare: Gather W-9 or equivalent tax documentation from the payee.
02

Verify: Confirm TIN via payer TIN-matching services or documentation.
03

Sign: Have authorized signers execute the exhibit with date and role.
04

Store: Retain the signed exhibit with vendor file and payroll records.

Recommended digital workflow settings for Tax Exhibits

Configure an eSignature workflow to validate TINs, enforce signer authentication, and preserve an auditable trail.

Field	Recommended Setting
Automatic TIN validation	Enable TIN matching \| Use IRS TIN-matching service or manual check
eSignature authentication	Email + SMS code \| Two-factor verification for payee
Conditional fields	Show only for contractors \| Display backup withholding fields when applicable
Record retention	Enable 7-year retention \| Preserve audit trail and attachments

Where to send and how the Tax Exhibit is used

Routing depends on the transaction: vendor onboarding, contract closing, or payment processing.

To the Payor: Attach to vendor file for accounts payable and 1099 preparation.
To Internal Tax: Provide copies to tax or payroll teams for reconciliation.
For Reporting: Use data to generate 1099s or other IRS information returns.
For Audit: Include with supporting documents retained for IRS review.

Key reporting deadlines linked to Tax Exhibits

Match the exhibit to the IRS reporting calendar to avoid late-filing penalties.

W-9 timing:

No fixed deadline | Provide upon payer request

1099-NEC:

Jan 31 | To recipients and IRS for nonemployee compensation

1099-MISC recipient:

Jan 31 | Recipient copies due

1099-MISC IRS (paper):

Feb 28 | Paper submissions only

1099-MISC IRS (electronic):

Mar 31 | Electronic filing deadline

Penalties and risks from incorrect Tax Exhibits

Late 1099 filing: Penalties start at $60 per form

Extended late filing: Penalties up to $330 per form

Intentional disregard: $660+ per form, no cap

Incorrect TIN: Triggers 24% backup withholding

Missing signatures: May invalidate exhibit for payer records

Insufficient retention: Risk of noncompliance on audit

Essential elements to include in a professional Tax Exhibit

A complete exhibit combines identification, tax classification, payment terms, and explicit signature authority to support reporting and withholding.

Title & Recitals

State the exhibit name, related agreement, and the transaction purpose so reviewers understand context and linkage to contract or payment obligations.

Payor / Payee Details

Include full legal names, DBA if used, complete mailing addresses, and contact information to match vendor setup and IRS reporting records precisely.

Tax Identification

Provide the payee's SSN or EIN in correct format and indicate whether documentation (W-9 or foreign equivalent) is attached for verification.

Entity Classification

Record whether the payee is an individual, partnership, corporation, S corp, trust, or LLC along with tax election details that affect 1099 reporting obligations.

Withholding Instructions

Document if backup withholding applies, if payer must withhold state taxes, or if tax treaty or reduced withholding documentation is present for foreign payees.

Signatures & Authority

Capture printed name, title, signature, and date for authorized signers. Note who can update the exhibit and any required witness or notary steps.

Security and compliance controls to protect Tax Exhibits

Encryption in transit: TLS 1.2/1.3

Encryption at rest: AES-256

Audit trail: Timestamped action log

HIPAA: BAA required

Certifications: SOC 2 Type II, ISO 27001

Access controls: Role-based permissions

Digital signing and technical requirements for eSubmission

Ensure the chosen eSignature platform supports required authentication, file formats, and integrations for your Tax Exhibit workflow.

Integrations: Salesforce, NetSuite, Microsoft 365 supported
File formats: PDF, DOCX, and Excel accepted
Authentication: Email + SMS code, optional KBA

Confirm the platform provides tamper-evident signed PDFs, an auditable certificate of completion, and retention controls to meet IRS and internal recordkeeping policies.

Real-world examples of Tax Exhibit use

Two concise scenarios show how exhibits support compliance during common transactions.

Real Estate Closing

A title company attaches a Tax Exhibit to closing documents to capture seller TIN and withholding status.

The exhibit clarifies withholding obligations in high-value sales.
The complete, signed exhibit reduced post-closing information requests and supported timely 1099-S reporting to the IRS.

Contractor Onboarding

A finance team requests a Tax Exhibit during vendor setup to document classification and TIN.

It captures backup withholding status and remit details.
Maintaining the exhibit with the vendor file simplified year-end 1099-NEC preparation and audit responses.

Practical tips to complete Tax Exhibits accurately

Follow these practices to reduce errors, protect data, and meet IRS expectations.

Verify TIN proactively

Use payer TIN-matching or request a completed W-9 before making payments. Early verification reduces IRS mismatch notices and potential 24% backup withholding obligations.

Maintain an auditable trail

Preserve signed exhibits, attachments, and the eSignature certificate of completion. An immutable audit trail supports defense against IRS inquiries and document authenticity challenges.

Limit sensitive exposure

Restrict access to exhibits containing SSNs and use redaction or tokenization for display copies. Comply with privacy and data security rules to reduce identity theft risk.

Standardize templates

Use a consistent Tax Exhibit template with conditional fields for entity types and clear signer authority lines. Standardization reduces omissions and speeds processing.

Comparing eSignature providers for executing Tax Exhibits

Compare starting prices and key features relevant to high-volume tax-related signing and recordkeeping; signNow is listed first per provider comparison conventions.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	Yes, 7-day free trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently asked questions about Tax Exhibits and eSigning

Answers to common questions about validity, signing, storage, and penalties for Tax Exhibits executed electronically.

Need help? Contact support

Is a Tax Exhibit an IRS form?
No. A Tax Exhibit is a supplemental document used to capture tax-related data; it supports preparation of IRS forms like W-9 or 1099 but is not filed with the IRS itself.
Can a Tax Exhibit be signed electronically?
Yes. Electronic signatures are legally valid in the United States under the ESIGN Act (15 U.S.C. §7001) and UETA where adopted, provided intent, consent, attribution, and record retention are satisfied.
When does backup withholding apply?
Backup withholding at 24% applies when the payee fails to provide a correct TIN or if the IRS notifies the payer that withholding is required; ensure accurate TIN entry to avoid withholding.
Do exhibits require notarization or witnesses?
Generally no for tax exhibits, but specific agreements or state rules may require notarization or witnesses in particular transactions; verify state or contract-specific requirements before execution.
How long must I keep signed exhibits?
Retain exhibits at least three years to satisfy IRS recordkeeping (IRC §6501(a)); certain industries require longer retention, and HIPAA records must be kept six years (45 CFR §164.530(j)).
What happens if the TIN is wrong?
An incorrect TIN can trigger IRS mismatch notices, delayed payments, and backup withholding. Reconcile TINs promptly and request corrected exhibits or W-9s when issues arise.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now