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When to Apply 24% Backup Withholding for Missing W-9s
August 6, 2025
Q. If a Non 1099 vendor does not give the W-9 should we withhold the 24% or the withhold is only applicable for 1099 vendors?
A.
(Answered by IOFM's third-party tax expert)
The 24% backup withholding rule only applies to "reportable transactions." This means, if a payment is not going to end up on a 1099, no backup withholding is required.
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