We received our first B-notice letter from the IRS for 2014 1099s. There are two vendors on the list that we do not even have in our system and have no knowledge of any payments to them. How do we handle this with IRS?


The list you provided is of 1099 errors that prevented the IRS from matching payee information to IRS records. If in your research you have found two companies on the list that are not your payees, then document by writing on the list “did not issue” next to those companies. This is according to IRS information reporting specialist Mr. Bork (ID# 1003078842). For the rest of the vendors on your list, review to see if the names and TIN combinations you filed (and are on the CP2100) agree with your records, or whether there was a typo, etc.—then follow through on requirements for those for whom you correctly filed the name and TIN as provided to you, but that are not a match, i.e., you have the wrong TIN. Send them B-notices, etc.  Mr. Bork did not say to do anything further, such as contact the IRS (we asked).

IRS Publication 1281 provides Instructions on backup withholding for missing and incorrect Name/TINs. Should you wish to contact the IRS directly, the information reporting help line is (866) 455-7438.

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