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Am I "Exempt from backup withholding" if I’m receiving a cash settlement from a corporation? I was told by my lawyer that the settlement amount was not taxable.

Submitted: 1791 days and 9 hours ago.

Category: Tax

Value: $5

Status: CLOSED

Accepted Answer

You are exempt from backup withholding unless you have received specific notification from the IRS that you are subject to backup withholding. When completing the paperwork with respect to this transaction, you should mark the box showing that you are exempt from backup withholding.

XXX@XXXXXXX.XXX

Accepts:
Expert:	Jon Andrews
Pos. Feedback:	99.7 %
Answered:	12/28/2004

Certified Public Accountant (CPA)

I deal with all levels of tax planning and controversy - from the ordinary to the complex.

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Tax

Have your own Tax question?

Question

Am I "Exempt from backup withholding" if I’m receiving a cash settlement from a corporation? I was told by my lawyer that the settlement amount was not taxable.

Accepted Answer

You are exempt from backup withholding unless you have received specific notification from the IRS that you are subject to backup withholding. When completing the paperwork with respect to this transaction, you should mark the box showing that you are exempt from backup withholding. XXX@XXXXXXX.XXX

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