{"id":3849,"date":"2025-02-28T13:20:04","date_gmt":"2025-02-28T13:20:04","guid":{"rendered":"https:\/\/www.tax1099.com\/blog\/?p=3849"},"modified":"2025-10-30T09:15:15","modified_gmt":"2025-10-30T09:15:15","slug":"backup-withholding-what-happens-if-contractors-tin-is-incorrect","status":"publish","type":"post","link":"https:\/\/www.tax1099.com\/blog\/backup-withholding-what-happens-if-contractors-tin-is-incorrect\/","title":{"rendered":"What is Backup Withholding? What happens if TIN is Incorrect?"},"content":{"rendered":"<p><span class=\"TextRun SCXW81344595 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW81344595 BCX8\">Hiring independent contractors is <\/span><span class=\"NormalTextRun SCXW81344595 BCX8\">a great way<\/span><span class=\"NormalTextRun SCXW81344595 BCX8\"> to scale your business, but it comes with tax responsibilities. One of the most critical details when filing <\/span><\/span><span class=\"TextRun SCXW81344595 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW81344595 BCX8\">1099 forms<\/span><\/span><span class=\"TextRun SCXW81344595 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW81344595 BCX8\"> is ensuring the contractor\u2019s <\/span><\/span><strong><span class=\"TextRun SCXW81344595 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW81344595 BCX8\">Taxpayer Identification Number (TIN)<\/span><\/span><\/strong><span class=\"TextRun SCXW81344595 BCX8\" lang=\"EN-US\" xml:lang=\"EN-US\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW81344595 BCX8\"> is <\/span><span class=\"NormalTextRun SCXW81344595 BCX8\">accurate<\/span><span class=\"NormalTextRun SCXW81344595 BCX8\">. But what happens if the TIN is incorrect?<br \/>\n<\/span><\/span>If the TIN is incorrect, the IRS may impose penalties and require you to correct the error. Additionally, you may be subject to\u00a0<strong>backup withholding<\/strong>.<\/p>\n<h2 aria-level=\"3\">What Is Backup Withholding?<\/h2>\n<p><span data-contrast=\"auto\">Backup withholding is a <\/span><b><span data-contrast=\"auto\">mandatory tax withholding<\/span><\/b><span data-contrast=\"auto\"> that applies when a contractor provides an incorrect TIN or fails to provide one at all. The IRS requires payers (businesses) to withhold <\/span><b><span data-contrast=\"auto\">24% of payments<\/span><\/b><span data-contrast=\"auto\"> to the contractor and remit them directly to the IRS until the issue is resolved.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"alignnone wp-image-3854\" src=\"https:\/\/www.tax1099.com\/blog\/wp-content\/uploads\/2025\/02\/infographic.png\" alt=\"what is backup withholding?\" width=\"868\" height=\"357\" \/><\/p>\n<h2><span data-contrast=\"auto\">What payments are subject to backup withholding?<\/span><\/h2>\n<p><span data-contrast=\"auto\">There are several payment types, including:<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\">Commissions, fees, or other contractor payments<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Attorney\u2019s fees<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Interest payments<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Dividends<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Payment card and third-party network transactions<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Rents, profits, or other gains<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">Royalty payments<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<h2 aria-level=\"3\">When Does Backup Withholding Apply?<\/h2>\n<p><span data-contrast=\"auto\">Your business must apply for it<\/span><span data-contrast=\"auto\">\u00a0if:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li><span data-contrast=\"auto\">The TIN provided is incorrect or doesn\u2019t match IRS records.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">The contractor fails to provide a TIN on <a href=\"https:\/\/www.tax1099.com\/blog\/form-w-9-a-complete-guide-for-freelancers-and-contractors\/\">Form W-9<\/a>.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><span data-contrast=\"auto\">The IRS notifies you that the contractor is subject to backup withholding due to underreporting.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<h2>Who is exempt from Backup Withholding?<\/h2>\n<p><span data-contrast=\"auto\">Some independent contractors might be exempt from backup withholding. Exempt contractors include:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Tax-exempt organizations<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Government agencies<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"4\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Corporations<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">To learn more about the exemptions, check out <\/span><a href=\"https:\/\/www.irs.gov\/pub\/irs-pdf\/iw9.pdf\"><span data-contrast=\"none\">Instructions for the Requester of Form W-9<\/span><\/a><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"3\">The Cost of Non-Compliance<\/h2>\n<p><span data-contrast=\"auto\">Failing to apply backup withholding when required can result in <\/span><b><span data-contrast=\"auto\">IRS penalties<\/span><\/b><span data-contrast=\"auto\"> for businesses. If a payer does not withhold when required, they may be <\/span><b><span data-contrast=\"auto\">liable for the full 24% withholding amount<\/span><\/b><span data-contrast=\"auto\">, along with additional fines and interest. Moreover, failure to file correct information returns can lead to further penalties ranging from <\/span><b><span data-contrast=\"auto\">$60 to $310 per form<\/span><\/b><span data-contrast=\"auto\">, depending on how late the correction is made.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<h2 aria-level=\"3\">What If Backup Withholding Has Already Been Applied?<\/h2>\n<p><span data-contrast=\"auto\">If backup withholding is already in place, businesses must:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\n<ol>\n<li><b><span data-contrast=\"auto\">Continue withholding 24% from payments<\/span><\/b><span data-contrast=\"auto\"> until the contractor provides a correct TIN.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Report the withheld amounts on Form 945<\/span><\/b><span data-contrast=\"auto\"> (Annual Return of Withheld Federal Income Tax).<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Issue <a href=\"https:\/\/www.tax1099.com\/1099-forms\/efile-form-1099-nec https:\/\/www.tax1099.com\/1099-forms\/efile-1099-misc-form\">Form 1099-NEC<\/a> or <a href=\"https:\/\/www.tax1099.com\/1099-forms\/efile-1099-misc-form\">Form 1099-MISC<\/a><\/span><\/b><span data-contrast=\"auto\"> to the contractor, reporting both the payments made and the amount withheld.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<li><b><span data-contrast=\"auto\">Remit the withheld taxes to the IRS<\/span><\/b><span data-contrast=\"auto\"> following the required deposit schedule.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ol>\n<h2 aria-level=\"3\">What Happens When Backup Withholding Is Overpaid?<\/h2>\n<p><span data-contrast=\"auto\">When you overpay tax as a payer, the excess can be refunded to the payee, just like other federal income tax overpayments. Here&#8217;s how the process works:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\"><br \/>\n<\/span><\/p>\n<ol>\n<li><b><span data-contrast=\"auto\">Reporting Backup Withholding on Form 1099<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\"><br \/>\n<\/span><span data-contrast=\"auto\">As the payer, when you withhold backup withholding tax from your payee&#8217;s income, you&#8217;ll report the amount withheld on an information return, such as Form 1099 (e.g., <\/span><b><span data-contrast=\"auto\"><a href=\"https:\/\/www.tax1099.com\/1099-forms\/efile-1099-int-form\">Form 1099-INT<\/a> for interest income<\/span><\/b><span data-contrast=\"auto\"> or <\/span><b><span data-contrast=\"auto\">Form 1099-MISC for miscellaneous income<\/span><\/b><span data-contrast=\"auto\">).<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\"><br \/>\n<\/span><span data-contrast=\"auto\"><span data-contrast=\"auto\">This form provides the IRS and the payee with the total income paid and the federal income tax withheld during the year.<\/span><\/span><\/li>\n<li><b style=\"font-family: inherit;\"><span data-contrast=\"auto\">Ensuring Accurate Filing on the Payee&#8217;s Tax Return<\/span><\/b><span style=\"font-family: inherit;\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\"><br \/>\n<\/span>At the end of the tax year, your payee must file a federal income tax return, reporting all sources of income and any taxes withheld, including the backup withholding you reported on <b style=\"font-family: inherit;\"><span data-contrast=\"auto\">Form 1099<\/span><\/b><span style=\"font-family: inherit;\" data-contrast=\"auto\">.<\/span><span style=\"font-family: inherit;\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\"><br \/>\n<\/span>The amount you withheld and reported will be included as part of the total federal tax withheld for the year.<\/li>\n<li><b style=\"font-family: inherit;\"><span data-contrast=\"auto\">Checking for Overpayment<\/span><\/b><span style=\"font-family: inherit;\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\"><br \/>\n<\/span>During the tax return review process, the IRS determines whether the payee&#8217;s total tax liability has been covered by the amounts withheld throughout the year, including the backup withholding you handled.<span style=\"font-family: inherit;\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\"><br \/>\n<\/span>If the total tax withheld exceeds the payee&#8217;s tax liability, the IRS considers it an overpayment.<\/li>\n<li><b style=\"font-family: inherit;\"><span data-contrast=\"auto\">Issuing a Refund for Overpayment<\/span><\/b><span style=\"font-family: inherit;\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\"><br \/>\n<\/span>When an overpayment is identified, your payee becomes eligible for a refund.<span style=\"font-family: inherit;\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\"><br \/>\n<\/span>The IRS will issue the refund, which includes any backup withholding that was more than what they owed in federal taxes.<span style=\"font-family: inherit;\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\n<\/ol>\n<h2 data-pm-slice=\"1 3 []\">How Tax1099 Simplifies TIN Verification &amp; Compliance?<\/h2>\n<p>Manually verifying TINs and managing withholding can be time-consuming. <a href=\"http:\/\/www.tax1099.com\">Tax1099<\/a> helps businesses stay <strong>IRS-compliant<\/strong> by:<\/p>\n<ul data-spread=\"false\">\n<li>Offering <strong>real-time TIN matching<\/strong> to detect errors before filing.<\/li>\n<li>Automating <strong>Form W-9 collection and validation<\/strong>, reducing manual work.<\/li>\n<li>Providing seamless <strong>e-filing for corrected 1099s<\/strong> if a mistake is made.<\/li>\n<li>Streamlining the <strong>reporting process<\/strong>, ensuring timely compliance.<\/li>\n<\/ul>\n<h2>FAQ&#8217;s<\/h2>\n<h5>1) What is the backup withholding rate?<\/h5>\n<p>It\u2019s 24%. Backup withholding is a safety net the IRS uses to make sure tax gets collected on certain payments that might otherwise go unreported.<\/p>\n<h5>2) What payments does backup withholding apply to?<\/h5>\n<p>Common ones include interest, dividends, rents, royalties, commissions and fees (including attorney\u2019s fees), and certain broker\/barter exchange payments. If a payment is normally reported on a 1099 and there is a TIN problem, backup withholding can be filed.<\/p>\n<h5>3) When do I have to apply backup withholding?<\/h5>\n<p>Start withholding if the payee\u2019s TIN is missing or incorrect, if they don\u2019t return a W-9, or if the IRS notifies you that the payee is subject to backup withholding (for example, because of underreporting). Act promptly- waiting can create liability.<\/p>\n<h5>4) What do I do once backup withholding applies?<\/h5>\n<p>Withhold 24% from the payment and keep withholding until a correct TIN is provided (or the IRS tells you to stop). Report the withheld tax on Form 945 (Annual Return of Withheld Federal Income Tax), and show federal income tax withheld on the appropriate 1099 you issue to the payee. Deposit the withheld tax on your regular deposit schedule (via EFTPS).<\/p>\n<h5>5) What happens if I don\u2019t follow the rules?<\/h5>\n<p>You can be on the hook for the full 24% that should have been withheld, plus information-return penalties under IRC \u00a7\u00a7 6721 and 6722. Those penalty dollar amounts are adjusted each year for inflation, so check the current IRS table.<\/p>\n<h5>6) What is the easy way to stay compliant?<\/h5>\n<p>To avoid mistakes, use <a href=\"https:\/\/www.tax1099.com\/features\/tin-lookup-tin-check-verification\">TIN verification<\/a>, collect W-9s automatically, and build in simple checks before you pay (all easy to do in tools like Tax1099).<\/p>\n<h3 data-pm-slice=\"1 1 []\">Final Thoughts<\/h3>\n<p>Incorrect TINs can trigger <strong>backup withholding, penalties, and extra paperwork<\/strong>\u2014a costly mistake for businesses. Protect your business by verifying contractor TINs with <strong>Tax1099<\/strong> and ensuring smooth tax compliance.<\/p>\n<p><strong>Don\u2019t risk backup withholding\u2014start verifying TINs with Tax1099 today!<\/strong><br \/>\nBy taking proactive measures, you can ensure accurate reporting, avoid penalties, and maintain smooth contractor relationships while keeping your business IRS-compliant.<\/p>\n<p style=\"text-align: center;\"><a class=\"btn-primary me-3\" href=\"https:\/\/classic.tax1099.com\/register?utm_medium=blog&amp;utm_source=tax1099&amp;utm_campaign=blogpost\">Start Verifying TINs<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hiring independent contractors is a great way to scale your business, but it comes with tax responsibilities. One of the most critical details when filing 1099 forms is ensuring the contractor\u2019s Taxpayer Identification Number (TIN) is accurate. But what happens if the TIN is incorrect? If the TIN is incorrect, the IRS may impose penalties [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":3856,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[548],"tags":[550,549,552,334,551,6,553,554],"class_list":["post-3849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tax-withholding","tag-backup-tax-withholding","tag-backup-withholding","tag-incorrect-tin","tag-irs-tin-matching","tag-tax-withholding","tag-tin-matching","tag-tin-matching-with-tax1099","tag-what-is-backup-withholding"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is Backup Withholding? 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