Are corporations exempt from backup withholding? 1.58K viewsTax 0 Feggins 0 Comments Are corporations and companies exempt from backup withholding? What are the tax rules for backup withholding? Do you have any link for the IRS website that will help me understand the backup withholding rules? 1 Answer ActiveVotedNewestOldest 0 Cantrell Posted 0 Comments Yes, companies incorporated in the US and which are under the US laws are exempt from backup withholding. Register or Login Search for: