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IRS W-9 2025 for Maryland: What You Should Know
The company is required to file a Statement of Inappropriate Return on any tax return and pay an additional amount per return to cover the costs of backup withholding. ii. For more information, go online to the IRS Help webpage Backup Withholding for Individuals and Legal Business Entities Backup Withholding can save your company a significant amount of time and money for all your tax-related activities. Before the backup withholding, you should check the backup withholding notice (Form 843) filed with your return. The Notice of Backup Withholding (Form 843-H) must be filed prior to filing a new tax return or attaching new tax returns to existing tax returns. It is filed in the tax return. If you get a notice of backup withholding on a tax return, you had a valid tax return and, therefore, have no tax liability. If you find you have a tax liability, you may wish to file an IRS Form 1040EZ — U.S. Individual Income Tax Return, which will show you the amount and the amount with which you are liable. To complete Form 843-H, you must indicate the amount of backup withholding with your taxes on the tax form. The backup withholding does not apply to you or to any business entity of which you are a member, unless it is a tax-exempt entity. You must not claim an exemption for this tax return even though you have reported backup withholding under the instructions of Form W-8 (Schedule G) filed with the Form 1040EZ. Backup Withholding Instructions: If a member's return is subject to backup withholding, the member must file with the member's return, the Statement of Backup Withholding (GAD-1018) or have the member's tax return audited to determine if the tax return should be corrected. Backup withholding is not tax return filing, for which you should contact tax professionals and/or the IRS. In all cases, backup withholding is required even though it is not tax return filing. Backup withholding is not tax return filing. When to File the Backup Withholding Notice to Claim No Tax Liability Backup withholding must be claimed on a tax return for purposes of determining whether to withhold tax from your payment to the individual or entity. All backup withholding returns must be filed at the same time. Additional Comments Backup withholding may be requested on federal income tax returns only for a total amount of 5,000 or less.
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