Nervously awaiting your CP2100 Report from the IRS?
Collecting and organizing all the needed documentation to show where you’ve mailed W-9s and corrected your 1099s, all while trying to stay current with the ever-changing rules and regulations can be extremely stressful – especially with potential IRS fines hanging over your head.
Businesses receive a form called CP-2100 from the IRS when there's a mismatch between what the business put on a Form 1099 for a contractor's social security number, versus what's in the IRS's database for the contractor's social security number.
If a payer receives a CP2100 notice indicating a missing or incorrect payee TIN, they could potentially be responsible for backup withholding. Mandated by the IRS under Internal Revenue Code §3406, backup withholding rules require payers to withhold 28% of payments made to these payees, which is remitted to the IRS via Form 945, Annual Return of Withheld Federal Income Tax.
WHY SHOULD YOU ATTEND?
When a business receives a CP-2100 notice, it must send out what's called a "B Notice" to the contractor, to request corrected information. Effectively handling CP-2100 letters and sending out B Notices helps a business stay in compliance and avoid penalties. how to deal with CP-2100 letters, and also provide tips on avoiding these letters.
AREA COVERED
- What is a CP-2100 letter?
- IRS Publication 1281 - a great resource for how to deal with CP-2100 letters.
- What is backup withholding?
- Understanding Form W-9.
- IRS "TIN matching" program.
- How to handle not getting an SSN from a contractor.
LEARNING OBJECTIVES
- 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.
WHO WILL BENEFIT?
- Accountant
- Accounting Firm
- Bookkeepers & Accountants & Tax Preparers
- California Registered Tax Professional
- CPA (Industry)
- CPA - Mid-Size Firm
- CPA - Small Firm
- Maryland Tax Preparers
- Oregon Tax Preparers
- Tax Attorney
- Tax Director (Industry)
- Tax Firm
- Tax Practitioners
- Tax Preparer
- Tax Professionals
- Young CPA
When a business receives a CP-2100 notice, it must send out what's called a "B Notice" to the contractor, to request corrected information. Effectively handling CP-2100 letters and sending out B Notices helps a business stay in compliance and avoid penalties. how to deal with CP-2100 letters, and also provide tips on avoiding these letters.
- What is a CP-2100 letter?
- IRS Publication 1281 - a great resource for how to deal with CP-2100 letters.
- What is backup withholding?
- Understanding Form W-9.
- IRS "TIN matching" program.
- How to handle not getting an SSN from a contractor.
- 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.
- Accountant
- Accounting Firm
- Bookkeepers & Accountants & Tax Preparers
- California Registered Tax Professional
- CPA (Industry)
- CPA - Mid-Size Firm
- CPA - Small Firm
- Maryland Tax Preparers
- Oregon Tax Preparers
- Tax Attorney
- Tax Director (Industry)
- Tax Firm
- Tax Practitioners
- Tax Preparer
- Tax Professionals
- Young CPA
