W9 and Backup Withholding Fiasco still unresolved after 3 months...

Okie@heart
Contributor

For the 3rd month in a row USAA has deducted backup withholding from my mother’s checking and savings accounts, even after receiving a completed W9!!! I am furious to say the least. I have spent at least 10 hours on the phone (or on hold) with several people, two of whom are “Executive Solution Team” members or supervisors, to no avail. In July 2018 everyone was to receive and complete a W9 form but it was not received here nor was there a second attempt or reminder (which I consider a common business courtesy). Each person I talk with apologies and reassures me all is in order and corrections are in scheduled (or not allowed to be made!) but after checking a week after each call nothing has been done. Most reps made notes on my file (but some did not) but it’s as if they are too backlogged or ill-equipped to handle this issue. As a 38-year customer I am so very disappointed in USAA :(

5 REPLIES

Okie@heart, So sorry for the disappointment with the W9 issue, this is not at all how we want you feel, especially after 38 years! Thank you for your trust and loyalty. I am forwarding your concerns to a Bank specialist now. Thank you  ~Tom

As a last resort I reached out to your Wealth Management Department and that rep told me my 3rd W9 (for a trust account) was still incorrectly completed (and explainted why) and sent me a new one. He also stated none of the backup withholding could be refunded due to the incorrect W9. The general phone staff AND the Executive Resolution Team (Karen, Dottie) have NO IDEA what they are doing (by promising to refund this tax)! USAA needs better training and at least a written guide so those answering questions have a proper knowledge base. I now understand the backup withholding will be documented on this year's Interest 1099 and can be deducted when filing taxes. Too many employees with too little training :(

@USAA - is it true that every member who has a checking or savings account was to receive a new W-9 to fill out?  And this is a simple Yes or No answer.     If so, it did not happen for our household.

  Also USAA should not be dispensing tax advice which I have known them to do in the past and as an accountant, I do know what constitutes tax advice.

 

 

Same issue on two checking accounts, two IRAs and a savings account.  Everytime I call, they can't help or need to reach out to another team.  Have been on hold a number of times in an attempt to resolve.  Everyone is very nice and professional, but not the best execution on this. 

@KyleS, It seems that you may have some questions regarding a W9 and backup withholding. I'd like to see if we can help. Can you share additional information? ~DC