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Payers may receive notices CP2100 and 2100A if they filed an information return with errors

6/1/2023

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When banks, credit unions, businesses and other payers file information returns with data that doesn’t match IRS records, the IRS sends them a CP2100 or CP2100A notice. The notices tell payers that the information returns they submitted have a missing or incorrect Taxpayer Identification Number, name or both.

Each notice has a list of payees with the issues the IRS found. Payers need to compare the accounts on the notice with their account records and correct or update their records, if necessary. Payees may also need to correct their backup withholding on payments made to payees.

The IRS sends CP2100 and CP2100A notices twice a year in September and October and again in April.

Information returns that may have incorrect information
The IRS sends notices for errors most frequently found on these forms:
  • Form 1099-B, Proceeds from Broker and Barter Exchange Transactions
  • Form 1099-DIV, Dividends and Distributions
  • Form 1099-G, Certain Government Payments
  • Form 1099-INT, Interest Income
  • Form 1099-K, Payment Card and Third Party Network
  • Transactions
  • Form 1099-MISC, Miscellaneous Information
  • Form 1099-NEC, Nonemployee Compensation
  • Form 1099-OID, Original Issue Discount
  • Form 1099-PATR, Taxable Distributions Received from Cooperatives
  • Form W-2G, Certain Gambling Winnings


Payments subject to backup withholding

CP2100 and CP2100A notices also tell payers that they may be required to backup withhold tax payments. If the payments are reported on the Form 1099 series and Form W-2G information returns, 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.


"Tax Tips" are published to provide current tax information, tax-cutting suggestions, and tax reminders. If you would like more information on anything in "Tax Tips," or if you'd like to be on our mailing list to receive other tax information from time to time, please contact our office.
 
The tax information contained in this site is of a general nature and should not be acted upon in your specific situation without further details and/or professional assistance.
 
We are trusted CPA advisors servicing Burr Ridge, Hinsdale, Willowbrook, Darien, Naperville, and all Chicagoland area. 

Do you need assistance with your business and/or personal tax returns? Would you like to have a trusted source for your accounting, allowing you additional time to focus on increasing your business? Do you use QuickBooks, or plan to in the future, for your accounting? We include these in all our service packages, customized to fit your personal or business needs.  
 
We are currently accepting new clients. Your initial consultation is free, so you have nothing to lose and everything to gain. Our experienced staff is available to help you streamline your accounting, giving you more free time for yourself. Set up an appointment today by calling (630) 320-3720 or email us at [email protected]. 
 
For more free resources, such as Tax Organizers, and Record Retention Schedules, access our website www.monarchaccountinggroup.com.

Mia Verc, CPA;  Janice Papais, CPA
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145 Tower Drive, Suite 10
Burr Ridge, IL 60527-7836
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  • Home
  • Solutions
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