TaxBandits Knowledge Base

My business received a CP2100 or CP2100A notice. What should I do?

If your business receives a CP2100 or CP2100A notice, you must take the following steps:

• Identify and review the recipient’s name and TIN listed on the notice.
• Compare this information with your records and with IRS records.
• If there is an error, correct it by sending the notice to the recipient and asking them to fill out the appropriate form (e.g., Form W-9 for missing or incorrect TINs) within 15 business days.
• If the error cannot be corrected or the payee does not respond within 30 calendar days, you must begin backup withholding at a rate of 24% on payments to that payee.
• You must stop backup withholding on payments within 30 calendar days after you have received the Form W-9 from the recipient (or TIN validation from the SSA or the IRS if it was a second notification—more on that in a moment).
• Submit the corrections to the IRS.

Keep records of all actions taken in response to the first “B” notice for at least four years.