IRC section 3406(a)(1): backup withholding when a payee gives no taxpayer number (26 U.S.C. 3406(a)(1))
Backup withholding is the separate US rule for payees who give no taxpayer number. A foreign holder avoids it by giving a Form W-8 instead of a Form W-9.
Dated 18 Oct 2026Source checked 18 Oct 2026Basis: primary text
In the source's own words
“In the case of any reportable payment, if- (A) the payee fails to furnish his TIN to the payor in the manner required, ... then the payor shall deduct and withhold from such payment a tax equal to the product of the fourth lowest rate of tax applicable under section 1(c)”
Where it was read
Figures it counts in
It is shown on its own, not counted into a figure.
Cited in this guide