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My funds are withheld, when will I receive them?

We may withhold funds for the following reasons:

  • Fraud protection
  • Backup withholding

Fraud protection

We may withhold funds to help protect you from fraud, for example, we may withhold funds for the following reasons:

  • If the batches are the first batches settled on a new account
  • If there are transactions that are unusually high in value

We can withhold funds by either delaying a batch or by diverting the funds into a non-interest-bearing escrow account.… Read More “My funds are withheld, when will I receive them?”

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