Question:

Am I subject to backup withholding?

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I was on a 1099 and owed 2000 in taxes, however, I am now down to 800 but I do still owe, obviously. Im being asked if I am subject to backup withholding and I am not sure if its the same thing

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2 ANSWERS


  1. Backup withholding is when the IRS forces a payor to withhold 28% of the interest or divident that an investment generates. Since you owe money, I suspect that you don't have that kind of income. If you do, I suggest that you use it to pay the IRS off.  


  2. You would know if the IRS had given you a letter saying you were subject to backup withholding.

    So, no letter, then you are not subject.  

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