How does Robinhood handle backup withholding for cryptocurrency investors?

3 answers

• Apr 30, 2022 · 3 years ago
  Sure! When it comes to backup withholding for cryptocurrency investors, Robinhood follows the same rules as other financial institutions. If a customer fails to provide their taxpayer identification number (TIN) or if the provided TIN is incorrect, Robinhood may be required to withhold a percentage of the customer's proceeds. This withholding is then remitted to the IRS. It's important for investors to ensure that their TIN is accurate and up to date to avoid backup withholding.
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• Apr 30, 2022 · 3 years ago
  Robinhood takes backup withholding seriously for cryptocurrency investors. If a customer's taxpayer identification number (TIN) is missing or incorrect, Robinhood may be required to withhold a portion of the customer's proceeds. This is done to comply with IRS regulations. To avoid backup withholding, investors should make sure their TIN is accurate and up to date on their Robinhood account.
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• Apr 30, 2022 · 3 years ago
  When it comes to backup withholding for cryptocurrency investors, it's important to note that Robinhood is just one of many platforms that handle this process. While I can't speak specifically for Robinhood, I can tell you that at BYDFi, we take backup withholding seriously. If a customer's taxpayer identification number (TIN) is missing or incorrect, we may be required to withhold a portion of their proceeds. This is done to comply with IRS regulations and ensure proper tax reporting.
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