Common use of Payees Exempt from Backup Withholding Clause in Contracts

Payees Exempt from Backup Withholding. Payees specifically exempted from backup withholding on ALL payments include the following: • An organization exempt from tax under section 501(a), or an XXX, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(f)(2). • The United States or any agency or instrumentality thereof. • A state, the District of Columbia, a possession of the United States, or any subdivision or instrumentality thereof. • A foreign government, a political subdivision of a foreign government, or any agency or instrumentality thereof. • An international organization or any agency or instrumentality thereof. Payees that may be exempt from backup withholding include: • A financial institution. • A corporation. •