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The document contains information about Backup Withholding requirements. Payments that are subject to Backup Withholdings include dividends, rents, commissions, exchange transactions. Payments that are not subject to the substitute withholdings are canceled debts, real estate transactions, unemployment and retirement compensations, care benefits, etc.

Where Can I Find Information About Publication 1281?

If you have questions regarding withholdings, take a look at Form 1281. In case you have a particular question, try to find it in the list of questions in the second half of the document – the FAQ.

Filling Out and Sending Publication 1281

If a payee refuses to pryou with a TIN, the will subject you to a penalty. However, the law allows for penalties to be removed in case of real reasons. If you provided a payee’s wrong TIN, don’t inform the of the mistake, but take the following steps:

  1. Send the corrected info on a future return.
  2. Do not send a B Notice to a payee.
  3. If you provided the correct info and the misinterpreted it, record that.

Why Do I Need a Publication 1281?

The document will introduce you to the requirements of Backup Withholdings regarding submitted information returns that contained wrong or missing TINs. Basically, you need a payee’s TIN even for one-time transactions. If you don’t find answers to your questions, contact Customer Service at (866) 455-7438.