Showing posts from October, 2014

Welcome to B-Notice Season!

It’s the time of year when companies begin receiving CP2100 and CP2100A notices from the IRS. These notices inform the filer of missing or incorrect taxpayer identification numbers. The notices may result in penalties.

Let’s take a look at what to expect from these notices, and how to prevent notices in the future. Why am I getting this notice? When you file your 1099's, the IRS runs taxpayer information through their database. The vendor-TIN comparison determines if you have filed with the correct information. The Taxpayer Identification Number and vendor name should match what the IRS has on file.
If the vendor-TIN combination is incorrect, the IRS might send you a CP2100A or CP2100. The IRS sends the CP2100A to those with 250 or fewer incorrect forms. The CP2100 is served to those with more than 250 incorrect forms. The notice includes a list of missing and incorrect TIN's.
What do I do next? First, send your recipient a B-notice within 15 days of receiving a CP2100 or CP2100…