If you are an exempt payee, you may be exempt from backup withholding. Backup withholding is the withholding of income tax on payments not subject to withholding. This includes interest, dividends, and certain payments made to independent contractors.
There are two types of exempt payees:
1) Those with a valid exemption certificate on file with the IRS
2) Those who do not have a valid exemption certificate on file, but meet certain criteria that prove their exempt status
If you …
