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
