Answer:
Yes. The IRS backup withholding requirements don't make an exception for bond redemption transactions.
First published on BankersOnline.com 5/27/13
Backup Withholding on Interest for IRS Notification?
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Question:
We have a customer on whom we are required to backup withhold per IRS notification. If that customer cashes a US government savings bond with us are we required to backup withhold on the interest he receives in that transaction?
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