Effectively Handling CP 2100 Letter and B Notices

Effectively handling CP-2100 letters and sending out B Notices helps a business stay in compliance and avoid penalties. CP-2100 letters come to your business from the IRS. These letters notify you that the social security number you put on a 1099 doesn’t match what’s in the IRS’s system. For example, the social security number of a contractor. When your business receives such a letter, you must take action by sending a “B Notice” to the other party.
 
This webinar will discuss how you can take steps to avoid CP-2100 letters to begin with, through the IRS’s “TIN Matching” program and proper usage of the Form W-9. We’ll cover more about B Notices in this program, and cover backup withholding.

CP-2100 letters can be a hassle for any business that issues 1099s. Attend the webinar to learn how to respond to CP-2100 letters, and how to possibly avoid them in the first place. 
As time allows, we will also delve into employee vs. contractor — is that “contractor” really an employee?

• To analyze what is a CP-2100 letter.
• To investigate how to use "B Notices".
• To explain the concept of backup withholding
• To analyze what is a Form W-9.
• To inspect how to use the IRS's TIN Matching Program. 

• What are CP-2100 Letters
• Sending out B Notices
• Dealing with backup withholding
• Avoiding CP-2100 Letters altogether
• TIN Matching
• Form W-9
• Another way out of CP-2100: do you really need to issue a 1099 at all?
• Bonus content as time allows, relating to contractor vs. employee

A CP 2100 letter alerts a payer that one or more taxpayer identification numbers (TINs) reported do not match IRS records. It includes a list of mismatched records and instructions for correcting them.

A B Notice is a follow-up to the CP 2100 letter, requiring the payer to take specific actions with the payees to correct or verify the TINs. There are two types of B Notices, each with different requirements for addressing the mismatches.

By proactively managing TIN data and promptly addressing CP 2100 letters and B Notices, businesses can mitigate risks, avoid penalties, and maintain compliance with IRS regulations.