What does backup withholding mean?
Backup withholding is a tax withholding method that is used to ensure that tax is paid on certain types of payments, including interest, dividends, rents, and royalties. Backup withholding is required by the Internal Revenue Service (IRS) when a payer does not have a taxpayer identification number (TIN) on file for the payee.
When is backup withholding required?
Backup withholding is required when a payer does not have a taxpayer identification number (TIN) on file …
