What evidence should a payer obtain from a contractor that claims to be tax-exempt?

The payer should obtain from the contractor a copy of the contractor’s federal determination letter of tax exemption or a letter of tax exemption from the North Carolina Department of Revenue and maintain that information in its records.

Read more:

• Frequently Asked Questions about 4% Withholding
• Frequently Asked Questions About Withholding From Nonresidents for Personal Services Performed in North Carolina