Exemption From Backup Withholding
Backup withholding is a tax withholding method that is used to ensure that tax is paid on taxable income that is not subject to withholding. Backup withholding is required in certain circumstances, such as when a payee does not provide their taxpayer identification number (TIN) to the payer.
However, there are some payees who are exempt from backup withholding. These payees include:
-The United States government, any of its agencies, or any political subdivision of the …
