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Backup Withholding

Definition

Withholding of a certain amount of investment income (e.g. interest, dividends) by banks and other businesses under conditions such as missing Taxpayer Identification Number (TIN) or under directions from the IRS. Also see: TEFRA, W-8, W-9.

Investing Essentials

Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University


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