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
Minimum standard of financial health for an insurance company, where assets exceed liabilities. State laws require insurance regulators to step in when solvency of an insurer is threatened ...
System whereby benefits in an employee benefit insurance plan vary according to the employee's earnings. ...
Bona fide organization that purchases insurance on a group basis on behalf of members. However, a group cannot be formed for the purpose of purchasing insurance since adverse selection ...
Approved or accepted policy for a particular type of risk. The only type of risk covered by a standard form mandated by law is the fire policy. In 1886, New York adopted a standard fire ...
Same as term Exclusions: provision in an insurance policy that indicates what is denied coverage. For example, common exclusions are: hazards deemed so catastrophic in nature that they are ...
Over a long period of time, the average loss an individual, individuals, or an organization can expect to incur from a particular exposure. ...
Trust named from a private-letter ruling by the IRS that involved a trust established by a Jewish congregation on behalf of its rabbi. The operation of the trust involves the employer's ...
Structure. In general, company functions are delegated to several departments: actuarial, agency, claims and loss control, investments, legal, marketing, and underwriting. ...
Term used for a general class of insurance such as life insurance, property insurance, or workers compensation insurance. ...
Have a question or comment?
We're here to help.