Tax Tip 2022-67: IRS sends CP2100 and 2100A notices when payers need to correct backup withholding errors

IRS Tax Tips May 2, 2022
Useful Links: IRS.gov Help For Hurricane Victims News Essentials What's Hot News Releases IRS - The Basics IRS Guidance Media Contacts Facts & Figures Around The Nation e-News Subscriptions The Newsroom Topics Multimedia Center Noticias en Español Radio PSAs Tax Scams/Consumer Alerts The Tax Gap Fact Sheets IRS Tax Tips Armed Forces Latest News IRS Resources Compliance & Enforcement News Contact Your Local IRS Office Filing Your Taxes Forms & Instructions Frequently Asked Questions Taxpayer Advocate Service Where to File IRS Social Media	Issue Number:  Tax Tip 2022-67 IRS sends CP2100 and 2100A notices when payers need to correct backup withholding errors In April, the IRS sent CP2100 and CP2100A notices to banks, credit unions, businesses or payers who filed returns that don't match IRS records. These information returns include: Form 1099-B, Proceeds from Broker and Barter Exchange Transactions Form 1099-DIV, Dividends and Distributions Form 1099-G, Certain Government Payments Form 1099-INT, Interest Income  Form 1099-K, Payment Card and Third-Party Network Transactions Form 1099-MISC, Miscellaneous Income Form 1099-NEC, Nonemployee Compensation Form 1099-OID, Original Issue Discount Form 1099-PATR, Taxable Distributions Received from Cooperatives Form W-2G, Certain Gambling Winnings The IRS mails these notices out twice a year, in September and October and again in April of the following year. The notices tell payers that the information return they submitted is missing a Taxpayer Identification number or has an incorrect name or both. Each notice has a list of payees with identified TIN issues. Payers need to compare the accounts listed on the notice with their account records and correct or update their records, if necessary. This can also include correcting backup withholding on payments made to payees. The notices also tell payers that they are responsible for backup withholding. Payments reported on the information returns listed above are subject to backup withholding if: The payer doesn't have the payee's TIN when making the reportable payments. The payee doesn't certify their TIN as required for reportable interest, dividend, broker, and barter exchange accounts. The IRS tells the payer that the payee gave an incorrect TIN, and the payee doesn't certify their TIN as required. The IRS tells the payer to begin backup withholding because the payee didn't report all their interest and dividends on their tax return. Payers are responsible for the amount they failed to backup withhold and penalties may apply. More information Publication 1281, Backup Withholding on Missing and Incorrect Name/TINs Share this tip on social media -- #IRSTaxTip: IRS sends CP2100 and 2100A notices when payers need to correct backup withholding errors. https://go.usa.gov/xuPqd Back to top           Thank you for subscribing to IRS Tax Tips, an IRS e-mail service. For more information on federal taxes please visit IRS.gov. This message was distributed automatically from the IRS Tax Tips mailing list. Please Do Not Reply To This Message.

 

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