Skip to content
ChatProjectCodes

SECTION 2. BACKGROUND

Internal Revenue Bulletin 1997-26 · 2026-10-03 edition · updated 2026-10-04 · United States

.01 Section 3406(a)(1) provides that backup withholding applies when a reportable payment is made to an account if either:

(1) the payor has not received the payee’s TIN at the time of the payment, or

(2) the TIN furnished by the payee to the payor has been determined to be incorrect and the payee has not furnished the correct TIN in a timely manner.

.02 Section 31.3406(j)–1(a) provides that the Commissioner has the authority to establish TIN matching programs and may prescribe by revenue procedure or other guidance the terms and conditions for participating in such a program.

.03 Section 31.3406(j)–1(b) provides that no matching details received by a payor through a TIN matching program will constitute a notice regarding an incorrect name/TIN combination under § 31.3406(d)–5(c).

.04 Section 31.3406(j)–1(c) provides that § 3406(f), relating to confidentiality of information, applies to any matching details received by a payor through a TIN matching program. A payor may not take into account any such matching details in determining whether to open or close an account with a payee.

Get a plain-English answer with a citation back to this text.

Ask AI about this code
Export this section
▸Contents — Internal Revenue Bulletin 1997-26
Internal Revenue Bulletin 1997-26

GoCodebook provides public access, search, citation, multilingual explanation, and practical interpretation of legally adopted building regulations. It is not a substitute for the official ICC or California code publications.