VALID › Notice Library › CP544 notice
In the IRS’s own words · not reviewed by VALID
CP544 notice explained, in the IRS’s own words
You no longer need to withhold taxes on interest, dividends and patronage dividends you pay to the taxpayers listed on your notice. The taxpayers listed are no longer subject to backup withholding.
Read the full CP544 page on irs.gov ↗
What this notice is about
You no longer need to withhold taxes on interest, dividends and patronage dividends you pay to the taxpayers listed on your notice. The taxpayers listed are no longer subject to backup withholding.
What you need to do
- Stop backup withholding within 30 days of receiving your notice or by Jan 1st.
- Report your withholding on Form 945, Annual Return of Withheld Federal Income Tax.
- Protect payee (taxpayer) information or you could be subject to civil damages for unauthorized disclosure (Internal Revenue Code Section 7431).
You may want to
- Read about backup withholding.
- Review Publication 1335, Backup Withholding Questions and Answers PDF.
- Use IRS Online Account to check your payoff amount, payment history, or to view transcripts.
What is backup withholding?
Backup withholding is withholding on interest and dividend income that a payer will withhold when we instruct them to do so.
What is the backup withholding rate?
Currently, it’s 24%. It can increase or decrease with tax laws.
How long will the payee be subject to backup withholding?
Until we instruct the payer to stop, or until the payee provides written certification from us to the payer that they’re no longer subject to backup withholding.
Reference tools
- Publication 1, Your Rights as a Taxpayer
- Publication 17, Your Federal Income Tax
- Full list of tax forms and instructions
Need help?
- You can authorize someone to contact the IRS on your behalf.
- If you can’t find what you need online, call the IRS number on your notice or letter. If you didn’t receive a letter or notice, use telephone assistance.
- If you can't resolve the penalty on your own, contact Taxpayer Advocate Service, an independent organization within IRS.
What to do next
- Write down the date on the letter today.
- Look the number up on irs.gov yourself. Don’t trust a link or phone number from anyone else.
- If it says you owe money or proposes changes to your return, take it to a licensed CPA, EA or tax attorney before that date.
Not advice. Not a filing. Verify with a licensed professional. Rules change by year and facts.