- backup withholding
- backup withholding ˈbackup withˌholding noun [uncountable]FINANCE a system in the US in which banks and companies paying out investment earnings to people whose social security numbers they do not have, send a percentage of the earnings directly to the tax authorities:
• The start of this backup withholding has been delayed, giving taxpayers more time to supply their numbers.
* * *backup withholding UK US noun [U]► TAX in the US, a system in which the tax on the income from some types of investment is sent directly to the tax authority, for example when a bank does not have all the information it needs about the person paying the tax: »
Under the backup withholding rules, the business or bank must withhold on a payment if the payee did not provide a taxpayer identification number.
Financial and business terms. 2012.
Look at other dictionaries:
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