You may be subject to backup withholding and the payer must withhold at a flat 24% rate when:
You don’t give the payer your TIN in the required manner.
The IRS notifies the payer that the TIN you gave is incorrect.
The IRS notifies the payer to start withholding on interest or dividends because you have underreported interest or dividends on your income tax return. The IRS will do this only after it has mailed you four notices over at least a 120-day period.
You fail to certify that you’re not subject to backup withholding for underreporting of interest and dividends.
