- What it means
- The 1099s you filed include payees whose name and taxpayer ID do not match IRS records. You must send B notices and may have to start backup withholding.
- Respond within
- 15 days from the date on the notice
- What to send
- B notices to each listed payee within 15 business days; corrected W-9s back from them within 30 business days.
- Write it
- Document cover letter
- When to get help
- A long payee list or a second-notice cycle is a job for whoever runs your accounts payable or payroll.
What the letter says
The IRS lists each 1099 where the payee name and TIN did not match. It is your obligation, not the payee's, to fix it.
Steps
- Within 15 business days, send each payee a B notice (the IRS provides the template in Publication 1281) asking for a corrected Form W-9.
- If a payee does not respond within 30 business days, begin backup withholding at 24 percent on future payments.
- Keep proof of the B notice mailing. That record is what protects you from the penalty.
Second notices
A second mismatch for the same payee within three years requires them to validate their TIN with the IRS or Social Security directly.
What to gather
- The CP2100 with the payee list
- Your copies of the listed 1099s
- Existing W-9s for those payees
- The B notice template from Publication 1281
Write back
The Document cover letter tool builds the response in the order the IRS reads it. Fill it in, review it, print it, and send it with copies of the documents above and the notice stub on top.
Before you send anything
This is general information, not tax advice. Situations differ. Check with your tax advisor before you send anything. Nothing on this page creates a client relationship.