Google Withholding Tax From Adsense Payouts?

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

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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