Ezel / IRS Rulings / 200938029

Payments were income and required backup withholding when payees lacked TINs

Number
200938029
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Backup Withholding
Topics
Employment taxes
Code sections
§ 3406
Ruling dated
November 24, 2008
Publicly released
September 18, 2009
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2009, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2009
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

Chief Counsel advised that the payments at issue were income to the payees. The advice further stated that the payer should backup withhold when payees failed to provide their taxpayer identification numbers. The document is an internal email and does not grant or deny a ruling.

Ruling snapshot

  • Question: Were the payments income to the payees, requiring backup withholding when payees did not provide their TINs?
  • Outcome: Advice given.
  • Key authorities: IRC § 3406.

Full text (IRS public release)

ID: CCA-112411-08 Number: 200938029
Release Date: 9/18/2009
Office: --------------
UILC: 3406.00-00

From: ---------------
Sent: Monday, November 24, 2008 7:41 AM
To: --------------------
Cc: ----------------------------------------------------
Subject: RE: ------- Jury Instructions

Hi ------------ -

------- has determined that the payments are income to the payees and thus -------- should backup
withhold in cases where payees fail to provide their TIN.

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