TO: BANK NAME
CFO NAME
STREET ADDRESS
CITY STATE ZIP
NOTICE TO NOMINEE
ATTN: NAME OF CFO, Date_________, 2010
(1) Please find enclosed your copy of information return 1099A, showing YOUR ALL
CAPS NAME as Lender and BANK NAME as Borrower for the
transaction(s)/account(s) referenced thereon. It has come to my attention that for tax
purposes this type of filing is essential in order to show the source of the credit that
funded the transaction(s) in account No. Your checking account number and to be clear
that this is a loan of my credit, not a GIFT.
(2) Enclosed is your copy of OID filing pertaining to the same transaction(s)/account(s).
As “Issuer” of the credit for the said transaction(s)/account(s), I have made this proper
reporting to the IRS in order to avoid violating the Trading With the Enemy Act (TWEA)
and not be in violation of U.S. Bankruptcy laws and in keeping with that to zero $-0- out
the said transaction(s)/account(s).
(3) Please note that as 'Holder' of OID Debt instruments referenced on the 1099's you are
a 'Nominee'. Per IRS codes and publications a Nominee must file another OID showing
the Nominee as the “Payer” and the true 'Owner' as the Recipient.
To make it easier for you I have enclosed a draft copy of the OID you should now file.
As you will see it shows you (bank) as the Payer and the true 'Owner' as the Recipient.
Please provide me notification in writing within ten (10) days of receipt of this Notice
that you have made the 1099OID filing as specified herein and also send me copy B of
the OID filing along with the confirmation number of the filing. Should you fail to file
the OID within the ten (10) days specified, then by your silence and lack of response you
are agreeing to have me take care of the proper reporting for your corporation.
If you feel this reporting is in error, you need to respond to the address provided below
within ten (10) days from the receipt of this NOTICE and inform me in writing that you
are in possession of the books and records showing the source of funding of the
aforementioned transaction(s)/account(s) to be other than my credit issued through
transmitting utility YOUR ALL CAPS NAME, SSN YOUR SSN and thirty (30) days to
provide me verified copies of those books and/or records, signed and attested to under
penalty of perjury by an officer of your corporation on his or her full commercial
liability.
If you fail to respond within ten (10) days of receipt of this Notice, indicating you have
evidence to the contrary as laid out in the previous paragraph, then you stipulate to the
fact that the source of the credit which funded the said transaction(s)/account(s) was
derived from me, Maria Fox via transmitting utility YOUR ALL CAPS NAME, SSN
YOUR SSN and the filings, listing (1) BANK NAME as Borrower on the 1099A, (2)
Recipient Nominee on the first OID and (3) Payer on the second OID are true and correct
and therefore BANK NAME is permanently estopped from any claim to the contrary.
NOTICE TO THE PRINCIPAL IS NOTICE TO THE AGENT
NOTICE TO THE AGENT IS NOTICE TO THE PRINCIPAL
It is important that all communication is accurately addressed to me and sent to the
address provided below so we can avoid any loss of documentation and provide each
other verification while we communicate about this transaction. Please note that
communication in any other manner or address will be certified by the notary as defective
service (default).
YOUR ALL CAPS NAME
c/o NOTARY NAME, Notary Acceptor
NOTARY STREET ADDRESS
CITY STATE ZIP
Thank you very much for your attention to this important tax matter. I look forward our
successful and ongoing business relationship.
Sincerely,
__________________________________
Your Upper and Lower case name
Authorized Representative for
YOUR ALL CAPS NAME, SSN YOUR
SSN
Certified Mail No. XXXX-XXXX-XXXX-XXXX-XXXX with return receipt requested.
PS – Please note that this NOTICE to you is in no way to be construed to mean I am
intending to stop payments on any debt obligations I have with you or your
subsidiaries or instrumentalities. I fully intend to pay any and all debts I have
incurred and at the same time, recover the credit I have issued.
