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Google Withholding Tax From Adsense Payouts?

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News reaches us that some publishers are reporting that Google have been withholding tax on Adsense cheques.

Some are saying that they’ve withheld up to 25% of publisher earnings without any kind of explanation.

UPDATE: rcjordan points out in the discussion below that this may be due to the US Gov’s backup withholding rule.

Source: Google Withholding Taxes from AdSense Checks

Excerpt:

There is a WebmasterWorld thread where a dozen members are reporting that Google has taken the liberty to withhold taxes from the AdSense checks they have sent to publishers.

The thread starter said ” I have a U.S. corporation with an EIN number registered with Google AdSense. The most recently reported payment (not yet received) was reduced by an approximate 25% “Tax Withheld”.

Nick Wilson is the publisher and founder of Threadwatch.org.

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Google Withholding Tax From Adsense Payouts?
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