What this notice is about This first notice is sent to tell the taxpayer they may be subject to backup withholding for unreported or unpaid interest or dividend income. What you need to do File Form 1040, U.S. Individual Income Tax Return PDF, if you haven’t already filed. Review your filed Form 1040 for underreported interest or dividend income. File an amended Form 1040 for any underreported interest or dividend income. Pay any taxes owed on Form 1040 with interest or dividend income. You may want to Read about backup withholding. Review Publication 1335, Backup Withholding Questions and Answers PDF. View your payoff amount, payment history, or order transcripts using the Tax Account tool. Frequently asked questions What is backup withholding? Backup withholding is withholding on mostly interest and dividend income that the payer will withhold when we instruct them to do so. What is the backup withholding rate? The current rate is 24% and can increase or decrease with the tax laws. How long will the payer continue backup withholding? The payer should continue until we instruct them to stop or until the payee provides written certification from us that they’re no longer subject to backup withholding. Tips for next year Tips for next year File your tax return timely Report all interest and dividend income Pay all taxes due Reference Tools Publication 1, Your Rights as a Taxpayer Publication 17, Your Federal Income Tax Full list of tax forms and instructions Need Help? You can authorize someone to contact the IRS on your behalf. See if you qualify for help from a Low Income Taxpayer Clinic. If you can’t find what you need online, call the IRS number at the top of your notice or letter.