Generally,an employer must withhold 28% of certain taxable payments if the payee fails to furnish the employer with a correct taxpayer identification number.

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This statement is true. The employer must withhold 28% of certain taxable payments if the payee fails to furnish a correct taxpayer identification number (TIN) or if there is a notice from the IRS that the payee provided an incorrect TIN. This is known as backup withholding.

Generally,an Employer Must Withhold 28% of Certain Taxable Payments If