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How do I avoid a hold and 24% IRS backup withholding when I repaid PayPal?

Adding your US tax ID or completing a Certificate of Foreign Status will help you avoid backup withholding when youre paid.

Who is exempt from backup withholding?

U.S. citizens or resident aliens are considered exempt from backup withholding if their reported name and Social Security Number matches the IRS records. Additionally, you are exempt if you have not been notified by the IRS that you are subject to mandatory backup withholding.

How do I remove IRS backup withholding?

To stop backup withholding, youll need to correct the reason you became subject to backup withholding. This can include providing the correct TIN to the payer, resolving the underreported income and paying the amount owed, or filing the missing return(s), as appropriate.

How to contact IRS about backup withholding?

Visit the IRS contact page to get help using online tools and resources. Or: For individual tax returns, call 1-800-829-1040, 7 AM - 7 PM Monday through Friday local time.

How can I fix my tax withholding?

Change your withholding To change your tax withholding you should: Complete a new Form W-4, Employees Withholding Allowance Certificate, and submit it to your employer. Complete a new Form W-4P, Withholding Certificate for Pension or Annuity Payments, and submit it to your payer.

What does IRS backup withholding mean?

When it applies, backup withholding requires a payer to withhold tax from payments not otherwise subject to withholding. You may be subject to backup withholding if you fail to provide a correct taxpayer identification number (TIN) when required or if you fail to report interest, dividend, or patronage dividend income.

How do I know if I am subject to IRS backup withholding?

You may be subject to backup withholding if you fail to provide a correct taxpayer identification number (TIN) when required or if you fail to report interest, dividend, or patronage dividend income.

How do I resolve IRS backup withholding?

How to prevent or stop backup withholding. To stop backup withholding, youll need to correct the reason you became subject to backup withholding. This can include providing the correct TIN to the payer, resolving the underreported income and paying the amount owed, or filing the missing return(s), as appropriate.

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