What Is Federal Backup Withholding?
Federal backup withholding is a tax that is withheld from certain payments made to individuals and businesses. The amount that is withheld is based on the recipient’s tax withholding status and the amount of the payment. Backup withholding is used to ensure that individuals and businesses pay the correct amount of taxes on their income.
Who Is Required to Withhold Federal Backup Withholding?
The following individuals and businesses are required to withhold federal backup withholding:…
