What is backup witholding?
This refers to a procedure used by the Internal Revenue Service to ensure that appropriate income taxes are collected. The IRS requires banks to withhold certain amounts if a customer has not provided a taxpayer identification number or the number provided was incorrect. The IRS may also instruct a bank to start withholding interest for other reasons.
This refers to a procedure used by the Internal Revenue Service to ensure that appropriate income taxes are collected. The IRS requires banks to withhold certain amounts if a customer has not provided a taxpayer identification number or the number provided was incorrect. The IRS may also instruct a bank to start withholding interest for other reasons.