The IRS is dropping the rate for backup withholding a little bit each year until 2006. Does anyone know what the rate is for 2002 and was it effective 1/1/02?

We set our system for the following changes:
8/7/01 from 31% to 30.5%
12/31/01 to 30%
12/31/03 to 29%
12/31/05 to 28%

Brenda, the dates should be 1 day later (1/1, not 12/31). For interest payments on or after.

8/7/01 from 31% to 30.5%
1/1/02 to 30%
1/1/04 to 29%
1/1/06 to 28%

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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.

And on 1/1/11 the rate goes back to 31%.

The backup withholding rates are as follows:

2002 - 2003 = 30%
2004 - 2005 = 29%
2006 - 2010 = 28%
2011 and thereafter = 31%