Withholding on Investment Interest/Payouts

We have been generating investment reports, and have noticed some payments that had monies withheld. Why would that happen?

The IRS requires that amounts be withheld from investment payments (payouts or interest payments) if the investor's social security or tax ID number is not on the investment account. Therefore, the default Investment System Setting option is to withhold when the tax ID field is blank. Amounts will continue to be withheld from any interest or other investment payment, until that field has information.

If you obtain the tax id within the current fiscal year, you can do an Investment Financial Adjustment to correct the withholding amounts. You cannot, however, remove amounts withheld in previous fiscal years.