VALID › Notice Library › CP546 notice
In the IRS’s own words · not reviewed by VALID
CP546 notice explained, in the IRS’s own words
This notice provides a payer, upon request, with a list of payees currently subject to backup withholding due to underreporting.
Read the full CP546 page on irs.gov ↗
What this notice is about
This notice provides a payer, upon request, with a list of payees currently subject to backup withholding due to underreporting.
What you need to do
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.
- Review Internal Revenue Code (IRC) sections relative to backup withholding.
- IRC Sections 3403, 6651, 6656, 7201, 7202, and 7203.
What is backup withholding?
It’s a withholding (deduction) from certain payments (mostly interest and dividends) that payers must take when instructed by us.
What is the backup withholding rate?
Currently, it’s 24%. It can increase or decrease with tax laws.
How long will the payer continue backup withholding?
Until we instruct them to stop, or until the payee provides written certification from us 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.