FAQ: Backup Withholding

Can State agency do any thing that can prevent the BUWH on vendor payment?

Yes - State Agency can insure that they have received correct TINs from vendors before entering vendor payment information into R*STARS. Entering incorrect TINs into the R*STARS vendor table will result in BUWH being applied to all State payments to the vendor.

The vendor name and TIN number should be exactly same (spelling & number) name/TIN Combination assigned by the SSA or IRS.