Attention small businesses: The IRS has updated its Publication 1281 on backup withholding to reflect a key change made by the Tax Cuts and Jobs Act. Because of the change, effective 1/1/18, the backup withholding tax rate dropped from 28% to 24%. Backup withholding applies when taxpayers fail to supply their correct taxpayer identification number to a payer. It also applies, following notification by the IRS, in other situations such as when taxpayers underreport interest or dividend income on federal tax returns. See the publication here: https://bit.ly/2pXXv4G. 

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