Subscribe to receive the latest tips and updates

If I don’t do business anymore with a payee, or if it was only a one-time transaction, what should I do with the “B” Notice?

Send it and try to get the correct TIN. Also, note your records to track the notice for the “two-in-three year” rule. You will need this information if you should renew business with the payee. We require that you track these accounts for three years after the date of the first CP2100A or CP2100 Notice.

Note: A “B” Notice is not required if no payments have been made to an account and no return is required for the account for one year.

For additional information see Publication 1281, Backup Withholding.