Federal Tax, Tax

Due Date to Report Backup Withholding is Almost Here!

The due date for paying and reporting backup withholding is almost here, reminds the IRS. Businesses and other payers that were required to withhold tax from certain payments in 2022 to meet backup withholding requirements must report the amounts by filing Form 945 by Jan. 31, 2023. Payers that made all federal deposits in full and on time have until Feb. 10, 2023. Backup withholding, currently at 24%, ensures that the IRS receives the tax due on income that isn’t typically subject to withholding. Examples include most kinds of payments reported on Forms 1099 and W-2G, or when a payee hasn’t provided the payer with a correct taxpayer ID number.  Click here for more on this topic. Questions? Reach out to Cg. © 2023