When You Receive a Notice from IRS About Information Returns That Don’t Match Their Records, What Should You Do?

The IRS is now notifying businesses, financial, and other payers that filed certain tax returns with information that doesn’t match up with the agency’s records. The IRS sends notices twice a year to persons who file information return forms that are missing a Taxpayer Identification Number (TIN), have the wrong name, or have a combination of both. If you receive a notice, you must compare the information listed against what you have on your records and correct them if necessary. The taxpayer might also be required correct backup withholding in addition to updating the TINs. 

The IRS requires businesses, financial organizations, and other payers to file information returns with the IRS, documenting certain payments they make to independent contractors, consumers, and other parties. The notices will include an extensive array of returns, ranging anywhere from: Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, to Form 1099-NEC, Nonemployee Compensation.  

Contact us if you receive a CP2100 or CP2100A notice or have questions about filing Form 1099-NEC. We can assist you in adhering to all regulations. 

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