Understanding your CP539 notice

What this notice is about

This is the fourth and final notice about your underreported or unpaid interest and dividend income. If you don’t resolve this by the date on your notice, we’ll send a final "C" notice and put backup withholding (BWH) into effect.

What you need to do

• Review your filed Form 1040 for underreported interest or dividend income.
  • File a Form 1040-X, Amended U.S. Individual Income Tax Return, for any underreported interest or dividend income.
• Pay all taxes owed on Form 1040 with interest or dividend income. Use your online account to view your balance and more.

You may want to

• Read about BWH.
• Review Publication 1335, Underreporter Backup Withholding Questions and Answers PDF.
• View your payoff amount, payment history, or order transcripts using the Online account tool.

Frequently asked questions

What is BWH? (updated Oct. 29, 2025)

This is when we instruct the payers of certain types of income (most commonly interest and dividends) to withhold a percentage of tax from future payments.

What is the BWH rate? (updated Oct. 29, 2025)

The current rate is 28% and can increase or decrease with the tax laws.

How long will the payers continue BWH? (updated Oct. 29, 2025)

The payers should continue until we tell them to stop or until you show them written certification from us that you’re not subject to BWH anymore.

Tips for next year

• File your tax return on time.
• Report all interest and dividend income.
• Pay all taxes due.