Which form is used to report backup withholding?

The form used to report backup withholding is Form 945. This specific form is designated for reporting income tax withheld from payments made to non-employees, such as independent contractors, and also includes backup withholding situations. Backup withholding occurs when a payee fails to provide a correct taxpayer identification number (TIN) or when the IRS notifies a payer to withhold taxes due to discrepancies in reported income.

Form 945 aggregates all the backup withholding amounts, making it essential for businesses that must report this withholding to the IRS. It is important to file this form annually to ensure compliance with federal tax regulations regarding backup withholding.

The other forms listed serve different purposes: Form 940 is utilized for reporting federal unemployment tax, Form 941 is for quarterly payroll taxes, and Form 941c is a correction form for 941, which does not specifically pertain to backup withholding.