Subject to backup withholding meaning is that the payer is required to withhold tax at a higher rate on certain payments to the payee. Backup withholding is generally required if the payee fails to provide a taxpayer identification number (TIN) or if the payee is a foreign person.
The backup withholding rate is 28%. This means that the payer must withhold 28% of the payment amount from the payee. The payer must also report the backup withholding on the payee’s …
