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CP544 notice: what it means and what to do
Got an IRS CP544 notice? Here is what it means, your deadline, what to check before you answer, and how to reply. Check your own letter free: it stays on your phone.
Check my CP544 notice freeWhat the IRS says this notice is about
You no longer need to withhold taxes on interest, dividends and patronage dividends you pay to the taxpayers listed on your notice. The taxpayers listed are no longer subject to backup withholding.
What you need to do
- Stop backup withholding within 30 days of receiving your notice or by Jan 1st.
- Report your withholding on Form 945, Annual Return of Withheld Federal Income Tax .
- Protect payee (taxpayer) information or you could be subject to civil damages for unauthorized disclosure (Internal Revenue Code Section 7431).
Your deadline
The IRS page for this notice mentions 30 days. Always use the date printed on your own notice.
What to check before you answer
Is this letter really from the IRS?
The IRS writes first by mail. A real letter shows a notice or letter number, your name and part of your tax ID number. The IRS does not ask for payment by gift card, crypto or wire transfer. If in doubt, sign in to your IRS online account, where many notices are listed.
You may want to
- Read about backup withholding .
- Review Publication 1335, Backup Withholding Questions and Answers PDF .
- Use IRS Online Account to check your payoff amount, payment history, or to view transcripts.
Common questions
What is backup withholding? (updated Mar. 25, 2026)
Backup withholding is withholding on interest and dividend income that a payer will withhold when we instruct them to do so.
What is the backup withholding rate? (updated Mar. 25, 2026)
Currently, it’s 24%. It can increase or decrease with tax laws.
How long will the payee be subject to backup withholding? (updated Mar. 25, 2026)
Until we instruct the payer to stop, or until the payee provides written certification from us to the payer that they’re no longer subject to backup withholding.
Get my response letter for CP544 noticeRelated notices
- Letter 2802C
- CP120A notice
- CP136 notice
- CP136B notice
- CP137 notice
- CP137A notice
- CP137B notice
- CP209 notice