What is backup withholding?

Persons making certain payments to you must under certain conditions withhold and pay to the
1RS a percentage of such payments. This is called ''backup withholding.'' Payments that
maybe subject to backup withholding include interest tax-exempt interest dividends, broker and
barter exchange transactions, rents, royalties, non employee pay, and certain payments from
fishing boat operators. Real estate transactions are not subject to backup withholding.
You will not be subject to backup withholding on payments you receive if you give the
 requested your correct TIN, make the proper certifications, and report all your taxable interest and
dividends on your tax retrn.

Payments you receive will be subject to backup withholding if :

1. You do not furnish your TlN to the requester,
2. You do not certify your TlN when required,
3. The IRS tells the requester that you furnished an incorrect TIN,
4. The IRS tells you that you are subject to backup withholding because you did not report all your interest arld dividends on your tax return(for reportable interest and dividends only), or

5.You do not certify to the requester that you are not subject to backup withholding under 4 above (for reportable interest and dividend accountsopened after 1983 only).

Exempt Payee

Certain payees and payments are exempt from backup withholding. If you are unsure of your backup withholding status, contact your tax advisor for assistance. Generally, individuals (including sole proprietors) are not exempt from backup withholding. Corporations are exempt from backup withholding for certain payments, such as interest and dividends.

The following payees are exempt from backup withholding:
l . An organization exempt from tax under section 50l (a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401(9(2),

2. The United States or any of its agencies or instrumentalists,

3. A state, the District of Columbia, a possession of the United States, or any of their political subdivisions or instrumentalists,

4. A foreign government or any of its political subdivisions, agencies,
or instrumentalists, or

5. An international organization or any of its agencies or instrumentalists.

Other payees that may be exempt from backup withholding include:

6. A corporation,

7. A foreign central bank of issue,

8. A dealer in securities or commodities required to register in the United States, the District of Columbia, or a possession of the United States,
9. A futures commission merchant registered with the Commodity Futures Trading Commission,

10. A real estate investment trust,

l l . An entity registered at a11times during the tax year under the Investment Company Act of 1940,

l2. A common trust fund operated by a bank under section 584(a),

l3. A financial institution,

l4. A middleman known in the investment community as a nominee or
custodian,or

l5. A trust exempt from tax under section 664 or described in section 4947.