When businesses and other payers file information returns with data that doesn't match IRS records, IRS sends a CP2100 or CP2100A notice to them. The notices tell payers that their information returns have a missing or incorrect Taxpayer Identification Number (TIN), name or both.
Each notice has a list of payees with the issues. Payers need to compare the listing with their records and correct or update their records, if necessary.
Payments subject to backup withholding
CP2100 and CP2100A notices also tell payers that they may be required to backup withhold tax payments. Payments may be subject to backup withholding if:
- The payee doesn’t:
- give their TIN to the payer in the required manner
- certify that they aren't subject to backup withholding for underreporting interest and dividends
- The IRS tells the payer
- the payee gave an incorrect TIN and didn’t certify their TIN as required
- they must begin backup withholding because the payee didn't report all their interest and dividends on their tax return
Payers are responsible for any amount they fail to backup withhold and the penalties that may apply.
More information:
Publication 1281, Backup Withholding on Missing and Incorrect Name/TINs (PDF)
