I recently received a notice to change the backup withholding rate for a customer to 30.5%. Has the rate changed, or is this an isolated case?

Yes, it changed for payments effective August 7, 2001. See the previous thread at:
http://www.bankersonline.com/ubb/Forum1/HTML/000691.html

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Al Miller, CRCM
Fremont Bank (CA)
(510) 790-5825
(510) 505-5211 FAX

Opinions expressed are my own and not necessarily shared by my employer.

The rate will change again:
2002 and 2003: 30.0%
2004 and 2005: 29.0%
2006 through 2010: 28.0%
2011 and thereafter: 31.0%

The rates are listed on page 2 of "Instructions for the Requester of Forms W-8BEN,... (Rev. August 2001)": http://ftp.fedworld.gov/pub/irs-pdf/iw8.pdf

They will also be listed on the revised W-9 Instructions scheduled for release in Dec. 2001.

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Opinions expressed are mine and not those of my employer.