Backup Withholding

Banks or other businesses that pay you certain kinds of income must file an information return Form 1099 with the IRS. The information return shows how much you were paid during the year. It also includes your name and taxpayer identification number (TIN).
These payments generally are not subject to withholding. However, "backup" withholding is required in certain situations.
Payments subject to backup withholding: Backup withholding can apply to most kinds of payments that are reported on Form

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