I have a IRS question ? !?

Question

What does it mean to be subject to backup withholding with the IRS?

Answer 1

It means that if they request a W-9 from you and you do not supply it properly filled out, they are required to withhold an amount towards income taxes (10% to 28% depending on source of the money).

Answer 2

Just like your employer can withhold part of your income for income tax, banks may be required to withhold part of the interest you earn for income tax, and this is called backup withholding.