Businesses need to be aware of the rules for backup withholding, if required. Backup withholding, currently 24%, applies to income not typically subject to withholding. If your business makes certain payments to people who haven’t provided you with their legal names and taxpayer ID numbers (TINs), or if the IRS notifies you that a payee’s TIN doesn’t match the TIN in IRS records, you might have to do backup withholding. Payments may include: interest, dividends, rents, profits, commissions, gambling winnings, taxable grants, broker and barter exchanges, and royalty payments. Compensation reported on Forms W-2 isn’t subject to backup withholding. For more information: https://bit.ly/3Xo7hfh . Contact us with questions. © 2023
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