Backup withholding is an Internal Revenue Service (IRS) mandate which requires that the university withhold and remit to the IRS 28% of a vendor's payment under certain conditions. Backup withholding is typically required when the payee has failed to provide us with a valid Taxpayer Identification Number, as determined by the IRS. Payees are issued an IRS form 1099 at year-end which includes all amounts withheld, which is also reported to the IRS. All funds withheld can be applied to the vendor's next federal tax return.
For recipients of a First B Notice, submittal of a complete and accurate Vendor Setup Form (substitute IRS Form W-9), is necessary in order to resolve a backup withholding status and to avoid further withholding on future payments.
For recipients of a Second B Notice, submittal of TIN validation documentation from the IRS or the SSA is necessary to resolve a backup withholding status. If an individual, a social security number printout is required or if a business, a 147C Letter is necessary.
For assistance or further questions contact Vendor Maintenance at BF-PRSM-Webform@osu.edu.