Understand the current rate, the difference between a missing/obviously incorrect TIN and an IRS mismatch notice, and the reporting steps that follow when backup withholding applies.
IRS guidance generally calls for backup withholding immediately if the payee did not furnish a TIN or furnished one that is obviously incorrect, such as a value that is not nine digits or contains alphabetic characters.
If the CP2100/CP2100A listing matches your records, send the appropriate B Notice. If the required response does not arrive, the IRS says backup withholding must begin no later than the applicable 30-business-day deadline.
The IRS says backup withholding is reported on Form 945. Deposits use the applicable federal deposit schedule; review current Publication 15 and Form 945 instructions.
It is federal income tax withheld from certain reportable nonpayroll payments. The payee may claim credit for the withholding on the payee's federal income tax return. The payer is responsible for applying the withholding rules correctly.
IRS sources: CP2100/CP2100A guidance · Backup Withholding B Program · 2026 General Instructions
The IRS currently states that the backup withholding rate is 24% of reportable payments when the backup-withholding rules apply.
IRS guidance generally requires immediate backup withholding when a payee fails to furnish a TIN or furnishes an obviously incorrect TIN, subject to specific exceptions in the instructions.
The IRS says payers report backup withholding liability on Form 945, Annual Return of Withheld Federal Income Tax. Deposits follow the applicable federal deposit schedule.
Not necessarily. For a name/TIN mismatch that matches the payer records, the B Notice response period matters. IRS guidance says withholding must begin no later than 30 business days after the notice if the payee does not provide the required response.
The free tools help diagnose individual filing problems. 1099ERICH is the $299 Windows desktop workflow for importing CSV or Excel data, validating records, printing recipient copies, and creating IRIS-ready CSV files.