Common use of Taxpayer ID and Backup Withholding Clause in Contracts

Taxpayer ID and Backup Withholding. Client understands that, if a correct Taxpayer Identification Number is not provided to Betterment Securities, Client may be subject to backup withholding tax at the appropriate rate on all dividends, interest, and gross proceeds paid to Client. Backup withholding taxes are sent to the IRS and cannot be refunded by Betterment Securities. Client further understands that if Client waives tax withholding and fails to pay sufficient estimated taxes to the IRS, Client may be subject to tax penalties.

Taxpayer ID and Backup Withholding. Client understands that, if a correct Taxpayer Identification Number is not provided to Betterment Securities, Client may be subject to backup withholding tax at the appropriate rate on all dividends, interest, and gross proceeds paid to Client’s Account. Backup withholding taxes are sent to the IRS and cannot be refunded by Betterment Securities. Client further understands that if Client waives tax withholding and fails to pay sufficient estimated taxes to the IRS, Client may be subject to tax penalties.