Not Subject to Backup Withholding Clause Samples
The 'Not Subject to Backup Withholding' clause affirms that a party is exempt from mandatory tax withholding on certain payments, typically because they have provided a valid taxpayer identification number and are not subject to IRS backup withholding rules. In practice, this clause is often included in contracts or forms where payments such as interest, dividends, or other reportable income are involved, and the payee certifies their exemption status, often by submitting a completed IRS Form W-9. The core function of this clause is to clarify tax responsibilities and prevent unnecessary withholding, ensuring that payments are made in full unless legally required otherwise.
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Not Subject to Backup Withholding. The Subscriber certifies, under penalty of perjury, that the Subscriber is not subject to the backup withholding provisions of the Internal Revenue Code of 1986, as amended. (Note: The Subscriber is subject to backup withholding if: (i) the Subscriber fails to furnish its Social Security Number or Taxpayer Identification Number herein; (ii) the Internal Revenue Service notifies the Company that the Subscriber furnished an incorrect Social Security Number or Taxpayer Identification Number; (iii) the Subscriber is notified that it is subject to backup withholding; or (iv) the Subscriber fails to certify that it is not subject to backup withholding or the Subscriber fails to certify the Subscriber’s Social Security Number or Taxpayer Identification Number.)
Not Subject to Backup Withholding. Contractor is not subject to backup withholding because (a) Contractor is exempt from backup withholding, (b) Contractor has not been notified by the IRS that Contractor is subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified Contractor that Contractor is no longer subject to backup withholding;
Not Subject to Backup Withholding. Provider is not subject to backup withholding because (a) Provider is exempt from backup withholding, (b) Provider has not been notified by the IRS that Provider is subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified Provider that Provider is no longer subject to backup withholding;
Not Subject to Backup Withholding. The Lender certifies, under penalty of perjury, that the Lender is not subject to the backup withholding provisions of the Internal Revenue Code of 1986, as amended. (Note: The Lender is subject to backup withholding if: (i) the Lender fails to furnish its Social Security Number or Taxpayer Identification Number herein; (ii) the Internal Revenue Service notifies the Company that the Lender furnished incorrect Social Security Numbers or Taxpayer Identification Numbers; (iii) the Lender is notified that it is subject to backup withholding; or (iv) the Lender fails to certify that it is not subject to backup withholding or fails to certify the Lender’s Social Security Number or Taxpayer Identification Number.)