Hello,

I am having trouble with the process of IRS - Name/TIN Discrepancy CP-2100. I sent out my B-notice and receive signed W-9 from my members.

My question, what is the next step? I am looking at older records from prior years and I see a lot of the same names on this years CP-2100. How do I respond to the IRS to get these cleared so I don't keep sending annual W-9 requests to my members.

The info on the W-9 matches the IRS records and my system records.

Thanks in advance,

The IRS matching and notification process is behind the times. Look at the tax year from which the 1099s in question were pulled. If you cleaned up any errors after those 1099s were created, there's another year of bad 1099s out there. It just takes a couple of years sometimes to get everyone on the same page.

If you're being assessed a penalty for any of those 1099s, you should be able to write to IRS to appeal based on the face that you corrected the error in your files.

John I am dealing with the same thing with 2008 and then 2009. They are telling me we owe $8100 ($50 ea) for incorrect or missig SSN. Many are simply a DBA or Trust that they only picked up the first line of the title and tried to match. I is actually correct. So you feel if we correct the records then they should accept the appeal?

Thanks John. I'll see there is any weeding out next year.

Bobw:

In my experience (admittedly, the last time I asked for an abatement of these fees was in 2003), such appeals are almost always accepted. In those cases in which you say the IRS only picks up the first line, remember that most systems only send one "owner" line with their 1099/1098 reporting to the IRS. Review your system's parameters to see if you are able to designate which line of the name and address to send on a per-account or per-customer basis, then make any needed changes. If you cannot designate which line gets sent, re-order the styling of the affected accounts so that the correct person (individual or entity) appears in the first line.

Exceptions: Since the name/number match is based on the first four characters of any "group" in the line being checked, if the correct last name appears in the first line, you don't need to swap things around. For example, consider a revocable trust --

Burnett Revocable Family Trust
John Burnett, Trustee

Many of these errors occur because we don't understand the IRS Control Name matching process and don't align our system records function correctly. Pull up the IRS control name chart at IRS.gov and make sure that your accounts are properly established on your system. Some systems have override fields that can prevent errors on some of the more complicated account matches, such as trusts and sole proprietors.

For example, on John Doe DBA John's Auto Sales, the SSN/EIN must match to "Doe". Is that how your system will capture the info?

Thanks all