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
Type of pension plan in which the employer (if noncontributory plan) or the employer and employee (if contributory plan) make level annual premium payments to fund the future retirement ...
Taking over of an insurance company's assets by the State Insurance Commissioner when examination of the annual report reveals that the company is in substantial financial difficulty. The ...
Classification at death of all pension plans, profit-sharing plans, individual retirement accounts (IRAS), annuities, and installment payments to the extent to which the deceased was ...
Trust in which rights to make any changes therein are surrendered permanently by the grantor. The grantor uses this type of trust to transfer assets and any potential depreciation out of ...
Premium that can vary up or down, Some life insurance policies permit the company to change the premiums after the policy is in force, depending on mortality experience, expenses, and ...
same as term Lost Policy Receipt: life insurance company form to be signed by a policyholder who wishes to surrender a policy that has been lost. The signed receipt then becomes evidence ...
Government health care program in several European countries that has been proposed in various forms for the U.S., to be administered by the federal government. Plan A would cover all U.S. ...
Balance sheet and profit and loss statement of an insurance company. This statement is used by State Insurance Commissioners to regulate an insurance company according to reserve ...
Coverage for property that moves from location to location from the perils of fire, lightning, explosion, windstorm, earthquake, collapse of bridges, flood, collision under one of the ...
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