Backup Withholding Rate
Effective January 4, 1994, the backup withholding rate on dividends, interest, and gross proceeds distributions increased from 20% to 31%. Backup withholding applies in the following situations: (1) if a United States citizen or resident, United States corporation, partnership, trust, estate, or other entity fails to certify their Taxpayer Identification Number (TIN) on Form W-9 (Request for Taxpayer Identification Number and Certification), or fails to provide documentation of their exemption from these rules; (2) if a taxpayer receives notification from the Internal Revenue Service (IRS) of a missing or invalid TIN and fails to certify the TIN by providing the payer with the required documentation; (3) if the taxpayer is notified by the IRS that the taxpayer is not subject to backup withholding because of under reporting of interest or dividends on the tax return and is not notified that it no longer applies.
Popular Insurance Terms
Rate of return computed by dividing the current annual dividend (if a stock) or annual coupon amount (if a bond) by the amount paid for that financial instrument. ...
Arrangement by which the insured agrees to incur a given degree of variability in the ultimate total costs associated with financing its losses. ...
Account that is similar in form to the health plan flexible spending account (FSA) with contributions to this account used to reimburse employees who are parents for expenses at a ...
Trust in which the trustee distributes capital and income to the beneficiaries of the trust according to their economic needs. ...
Clause in the Standard Fire Policy and many other property insurance policies that excepts coverage for losses caused by riot or civil commotion. Coverage for riot and civil commotion can ...
Maximum amount of a specified type of insurance coverage, according to underwriting guidelines, that an insurance company feels it can safely underwrite on a particular exposure without ...
Financial analysis method established by the national association of insurance commissioners (naic) to detect problems of property and casualty insurance companies and life and health ...
Common element in property insurance that excludes electrical damage or destruction of an appliance unless the damage is caused by a resultant fire. ...
Requiring assets and liabilities of an insurance company to go up or down together on a proportional basis. The duration of the asset and liability should be approximately the same. For ...
Have a question or comment?
We're here to help.