What if our system is unable to backup withhold and . . .
What if our system is unable to backup withhold and so we hold all payments to a vendor until we receive the information we need?
In situations where backup withholding is required, the tax regulations require you to...
What should we do if a prize winner refuses to . . .
What should we do if a prize winner refuses to release his SSN to us for reporting purposes?
If the prize or award value is $600 or more then...
Are we responsible for obtaining a completed Form W-9 from . . .
Are we responsible for obtaining a completed Form W-9 from people who have won a prize or award?
You need to report a prize or award if...
Georgia's withholding of 6% is required on payments where the . . .
Georgia's withholding of 6% is required on payments where the individual failed to provide a TIN, failed to provide a correct TIN, or provided a TIN typically issued to a nonresident alien. This regulation was effective July 1, 2007. Does that mean that any provider listed in my system on backup withholding for IRS purposes is also subject to GA withholding even if the IRS backup withholding started before July 1, 2007?
Here is what you need to know...
Essentially, yes. If you make a payment to a vendor, after July 1, 2007, who has not provided you with a TIN, or has provided an incorrect TIN, then you will withhold both the 6% Georgia tax from the payment, as well as the federal backup withholding of 28%.