backup withholding

/'bækʌp wɪθˌhəυldɪŋ/ noun US
a tax retained from investment income so that the IRS is sure of getting the tax due

Dictionary of banking and finance. 2015.

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  • backup withholding — ˈbackup withˌholding noun [uncountable] FINANCE a system in the US in which banks and companies paying out investment earnings to people whose social security numbers they do not have, send a percentage of the earnings directly to the tax… …   Financial and business terms

  • Backup Withholding — Tax that is levied on investment income, at an established tax rate, as the investor withdraws it. Backup withholding helps to ensure that government tax collecting agencies (such as the IRS or Canada Revenue Agency) will be able to receive… …   Investment dictionary

  • Backup Withholding — This is a United States Tax related article. Please refer to rules set forth by the Internal Revenue Service for correct and up to date information. According to the Internal Revenue Service, in the United States, backup withholding is a… …   Wikipedia

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  • Withholding tax — is an amount withheld by the party making payment to another (payee) and paid to the taxation authorities. The amount the payer deducts may vary, depending on the nature of the product or service being paid for. The payee is assessed on the gross …   Wikipedia

  • Tax forms in the United States — are used by taxpayers and tax exempt organizations to report financial information to the Internal Revenue Service (IRS). They are used to report income and calculate taxes owed to the government of the United States. TOC Federal tax forms 990… …   Wikipedia

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  • W-8 Form — An IRS form that grants a foreigner an exemption from certain U.S. information return reporting and backup withholding regulations. There are many variations of the W 8 form, such as the W 8BEN and W 8ECI. One of the main purposes of this… …   Investment dictionary

  • Dan Rostenkowski — Member of the U.S. House of Representatives from Illinois s 8th, 5th district In office January 3, 1959 – January 3, 1995 Preceded by …   Wikipedia

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