Statute section

IRC section 3406

Backup withholding

Country

United States

Section

3406

Updated

2026-05-20

Operative text

Section 3406 requires backup withholding at 24 percent (post-TCJA rate) on reportable payments when a payee fails to provide a TIN, provides an incorrect TIN, or has been notified of underreporting.

Amendment history

2017-12-22

Pub. L. 115-97

TCJA modified the backup withholding rate to 24 percent.

Cross-references

26 U.S.C. 604126 U.S.C. 3402

Related guides

backup-withholding-guide

Primary sources

26 U.S.C. section 3406Verified 2026-05-20

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.