Topic no. 307, Backup withholding | Internal Revenue Service

: You did not certify that you are exempt from backup withholding (usually on Form W-9). Common Income Types Subject to 307 Interest payments Rents, profits, or other gains Commissions or fees for work as an independent contractor Broker payments 🛑 How to Stop or Prevent It

: If you overpaid through this method, you may receive the excess back as part of your tax refund.

: If triggered by underreporting, you must file the necessary tax returns and pay any owed amounts.

: Give the payer your correct name and TIN.

Banks and businesses typically pay interest, dividends, and other income without withholding taxes. However, they must withhold a flat percentage (currently ) if any of the following apply:

: You failed to provide a Taxpayer Identification Number (TIN), such as a Social Security Number, to the payer.