IRS Letter CP2100A is a notice the IRS sends to businesses and other payers when it finds mismatches in taxpayer identification numbers (TINs) on Form 1099s. These mismatches happen when the name or TIN you submit does not match IRS records. If not corrected, they can cause delays and compliance issues.
Why You Received a CP2100A
The IRS sends CP2100A letters for two main reasons:
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Incorrect TINs – The IRS found mismatches between names and TINs.
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Backup Withholding – If the payee’s TIN is wrong, you may need to start backup withholding at 24% until they provide a valid number.
What to Do When You Get a CP2100A
Follow these steps right away:
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Review the Accounts – Check the list of payees with incorrect TINs.
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Send a “B Notice” – Tell each payee about the mismatch. The IRS requires you to send them a “B Notice” and request the correct TIN.
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Begin Backup Withholding – If the payee does not correct their TIN, you must begin backup withholding at the IRS rate.
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Update Your Records – Once you receive corrected TINs, update your records to prevent future errors.
How to Avoid Future CP2100A Letters
To lower the chance of receiving another notice:
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Always check TINs using the IRS TIN Matching system before filing Form 1099.
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Enter names and TINs exactly as they appear on the payee’s tax documents.
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Audit your records regularly to catch errors early.
Why This Matters
A CP2100A notice may seem routine, but ignoring it can trigger penalties and extra work. Acting quickly helps you stay compliant and prevents withholding issues.
For help avoiding TIN mismatches, explore our TIN Matching Software. It can save time, reduce errors, and keep you IRS-compliant.