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Receipt of Multiple Notices with Respect to Incorrect Taxpayer Identification Numbers |
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The IRS has issued a proposed regulation relating to backup withholding: REG-116644-01. The regulations clarify the method of determining whether the payor has received two notices that a payee's taxpayer identification number (TIN) is incorrect. If a payor receives two or more such notices with respect to the same account during a three-year period, the payor must begin backup withholding unless the payee provides verification of his correct TIN pursuant to the regulations. This document also contains proposed regulations that clarify when an information return filer must solicit a payee's TIN following the receipt of a penalty notice. In addition, this document provides notice of a public hearing on these proposed regulations.
Please link to http://www.irs.gov/pub/irs-regs/11664401.pdf to get the full text on this regulation. |
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