IRS Releases Updated Publication on Backup Withholding for Missing and Incorrect Name/TINs

August 10, 2018 Paul Ogawa

The IRS recently published an updated version of Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(s). This publication provides information on backup withholding procedures as they relate to information reporting involving missing or incorrect taxpayer identification numbers, or TINs.

There is only one minor update to Publication 1281, which involves the instructions for issuing the Second “B” Notice to a payee in response to a Notice CP2100/CP2100A from the IRS.

  • When establishing the validity of certain identification numbers, documentation from the IRS is required. A payee must respond to a second “B” notice by requesting a certain letter from the IRS and submitting it to the payer in response to the second “B” notice. The letter type depends on the type of TIN the payee seeks to validate.
    • If the number is an Employer Identification Number (EIN), Letter 147C is required.
    • If the number is an Individual Taxpayer Identification Number (ITIN), Letter 685C is required.
    • If the number is an Adoption Taxpayer Identification Number (ATIN), Letter 096C is required.
  • Previously, these instructions accounted for EIN validation only.

To review this publication in its entirety, please visit the IRS website by clicking here.

About the Author

Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.

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