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ITG FAQ #3 Answer-What is backup withholding?

You generally must withhold 28% of certain taxable payments if the payee fails to furnish you with his or her correct taxpayer identification number (TIN) prior to payment.

This withholding is referred to as "backup withholding." Publication 15 , (Circular E), Employer's Tax Guide, provides additional information regarding which payments are subject to backup withholding.

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Page Last Reviewed or Updated: 24-Nov-2014