BACKUP WITHHOLDING Definition

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BACKUP WITHHOLDING is a mandatory withholding that may be imposed when rules regarding taxpayer identification numbers, (usually a Social Security number) are not met by the individual. Another way for these withholdings to take effect is when a notice is issued by the IRS to withhold on payments to that individual. Backup withholding may be claimed as a credit by taxpayers on their federal income tax return.

Learn new Accounting Terms

NOPLAT is Net Operating Profit Less Adjusted Taxes.

REVENUE RESERVE is a fund that is not a CAPITAL RESERVE, i.e. the funds are distributable.

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