Helpful resources for coping with TIN matching notices

By Debera J. Salam, CPP, Houston

Editor: Susan Minasian Grais, CPA, J.D., LL.M.

In a news bulletin published Oct. 4, 2019, (available at www.irs.gov, click on "October 4" under 2019) the IRS explains the circumstances under which it issues Notices CP2100 and CP2100A. These notices provide payers with a list of information returns they have filed that contain missing, incorrect, and/or not currently issued taxpayer identification numbers (TINs). The notices also inform payers that they could be required to begin backup withholding, in compliance with IRS Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s).

TIN compliance resources

The IRS refers payers to various resources to help them comply with TIN requirements and thus avoid receiving a Notice CP2100:

  • About General Instructions for Certain Information Returns, regarding filing correct forms in the 1099, 1097, and 1098 series, as well as Form 3921, Exercise of an Incentive Stock Option Under Section 422(b); Form 3922, Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c); Form 5498, IRA Contribution Information; and Form W-2G, Certain Gambling Winnings;
  • "W-9 Saves Time and Money" video (discussing the benefits of securing Form W-9, Request for Taxpayer Identification Number and Certification, from service vendors);
  • "TIN Matching Program" video, explaining the IRS's free Taxpayer Identification Number (TIN) On-Line Matching program;
  • The Social Security Number Verification Service (for Forms W-2, Wage and Tax Statement); and
  • "What You Need to Know About Backup Withholding" video.
Election worker issues for payers

The IRS also reminds payers in the bulletin that compensation paid to election workers is considered income and may be subject to federal income tax, Social Security/Medicare (Federal Insurance Contributions Act) tax, and certain reporting requirements. To learn more about the reporting and withholding requirements unique to election workers, the IRS refers payers to the webpage "Election Workers: Reporting and Withholding."

Insights

This IRS announcement is well timed as businesses begin filing their information returns for 2019. Businesses should consider taking advantage of programs available from the IRS and the Social Security Administration to confirm the accuracy of individuals' TINs before finalizing their 2019 information returns and statements (e.g., Forms 1099 and W-2).

EditorNotes

Susan Minasian Grais, CPA, J.D., LL.M., is a managing director at Ernst & Young LLP in Washington, D.C.

For additional information about these items, contact Ms. Grais at 202-327-8788 or susan.grais@ey.com.

Contributors are members of or associated with Ernst & Young LLP. Versions of many of these items were previously published as Ernst & Young Tax Alerts.

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