b notice - Global Payments Integrated Help Center

Am I exempt from backup withholding?

It is very unlikely that you are exempt from backup withholding, but some groups and types of transactions are exempt.

Groups exempt from backup withholding

Government agencies
Non-profit organizations
Banks and corporations

Transactions exempt from backup withholding

Real estate transactions
Foreclosures and abandonments
Cancelled debts
Distributions from Archer Medical Savings Accounts (MSAs)
Long-term care benefits
Distributions from any retirement account
Distributions from an Employee Stock Ownership Plan (ESOP)
Cash payments for fish
Unemployment compensation
State or local income tax refunds
Qualified tuition program earnings

I have responded to my B notice, when will my funds be released?

We stop backup withholding when you correct your records. We cannot return your funds to you until you file your taxes for the corresponding year. For example:

If the IRS instructed us to withhold your funds in December 2017, we will not be able to return the funds to you until you file your taxes for 2017.

How do I stop backup withholding happening in the future?

The best way to avoid backup withholding is to provide us with the correct information.

If you previously needed to correct your information due to backup withholding, make sure that your legal information is correct.

Note: If your funds are currently withheld due to a backup withholding, a legal change will not fix the issue.

How do I update my legal information?

To update your legal information, contact our Customer Support team.

Articles tagged: b notice

Groups exempt from backup withholding

Transactions exempt from backup withholding