What is Exempt from backup withholding Do I need to check this on the form. I tried to read on it but didn't fully understand it.
backup withholding will apply if: The payee fails to furnish his or her taxpayer identification number (TIN) to you, For interest, dividend, and broker and barter exchange accounts opened or instruments acquired after 1983, the payee fails to certify, under penalties of perjury, that the TIN provided is correct, The IRS notifies you to impose backup withholding because the payee furnished an incorrect TIN (CP2100 or CP2100A). For interest and dividend accounts or instruments, you are notified that the payee is subject to backup withholding (under section 3406(a)(1)(C), "C" notice), or For interest and dividend accounts opened or instruments acquired after 1983, the payee fails to certify to you, under penalties of perjury, that he or she is not subject to backup withholding. Some payees are exempt from backup withholding. For a list of exempt payees and other information, see Form W-9, Request for Taxpayer Identification Number and Certification, and the separate Instructions for the Requester of Form W-9.