What this notice is about This notice is sent to tell a payer of interest or dividend income to stop backup withholding on a payee (taxpayer). What you need to do Discontinue backup withholding within 30 days of receipt of notice. Report your withholding on Form 945, Annual Return of Withheld Federal Income Tax. Protect the payee’s (taxpayer’s) information or you could be subject to civil damages for unauthorized disclosure (Internal Revenue Code Section 7431). 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. Review Internal Revenue Code, (IRC) sections relative to backup withholding. IRC Sections 3403,6651,6656,7201,7202, and 7203. 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. 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.