IRS Logo
Print - Click this link to Print this page

ITG FAQ #4 Answer-When is backup withholding applicable?

IRC 3406(a) states backup withholding is applicable in the case of any reportable payment if:

  • the payee fails to furnish his/her Taxpayer Identification Number (TIN) to the payor in the manner required;
  • the IRS notifies the payor that the TIN furnished by the payee is incorrect;
  • there has been a notified payee underreporting;
  • there has been a payee certification failure.

Return to List of FAQs

Page Last Reviewed or Updated: 14-Aug-2014