Most people are not subject to federal backup withholding.
The IRS notifies taxpayers if they are subject to backup withholding. Any of the following reasons may cause your account to be subject to backup withholding:
See Also
Pros and Cons of High-Yield Savings Accounts - ExperianDo you pay taxes on a high-yield savings account?Is High-Yield Savings Account Interest Taxable?Backup Withholdings - Tax Group Center- You received specific notification from the IRS stating that you are subject to backup withholding
- You fail to furnish your taxpayer identification number on Form W9
- You provide the wrong taxpayer identification number
- You ignore notices from the IRS claiming that you have under reported interest or dividend income on your tax return
Important: If you have been notified by the IRS concerning your backup withholding status, you must state so when opening a Folio Investing account. If you are unsure of your backup withholding status, all questions should be directed to a tax advisor or the IRS.
See Also
Backup withholding | FTB.ca.govClose This Window
