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About: Backup withholding     Goto   Sponge   NotDistinct   Permalink

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In American tax administration, backup withholding is a specified percentage (24% for tax years 2018-2025 but previously 28%) withheld by the payers to be paid to the IRS on most kinds of transactions reported on variants of Form 1099. Backup withholding may be required for several reasons, including but not limited to: * an improper TIN/ITIN/ATIN on the W-9 * an IRS backup withholding order * certain types of payment are always subject Payments reported on a 1099 are generally not subject to withholding. However, "backup" withholding is required in certain situations.