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CP2100 and 2100A Notcies being sent by IRS

In case you missed it, the Internal Revenue Service (IRS) announced that beginning in mid-April, it will be sending out Notices CP2100 and 2100A to certain financial institutions, businesses or payers. Generally, the IRS sends these notices two times each year. The first mailing occurs in September and October. The second mailing occurs in April of the following calendar year.

These notices are meant to help payers correct backup withholding errors in April 2022 related to the following information returns that do not match IRS records:

  • 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

Specifically, these notices inform payers that they submitted one of the above-named information returns without a Taxpayer Identification Number (TIN), that the information return has an incorrect name, or a combination of both. They also notify payers filing these information returns when they are responsible for backup withholding. This happens when:

  • The payer does not have the TIN of the payee on file when making reportable payments to the payee.
  • The payee did not certify its TIN in the manner required for reportable interest, dividend, broker and barter exchange accounts.
  • The IRS notifies the payer that the payee furnished an incorrect TIN and the payee does not certify its TIN as required.
  • The IRS notifies the payer to begin backup withholding because the payee did not report all of its interest and dividends on their tax return.

Check out the announcement here:

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CP2100 and 2100A

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