IRS B Notice and Penalty Notice: Required Actions and Best Practices | Product

The 2023 edition of this essential tax compliance training program will provide updates on the IRS campaign against backup withholding noncompliance and will cover the procedures required of a payer/filer that is issued IRS Notice CP 2100 (“B Notice”) or Notice 972CG (information return penalties proposed against your organization).

You’ll learn best practices which better equip you to handle these important Notices when the IRS issues them to your organization, including the three stages of compliance: the initial vendor setup (which can “make or break” your compliance capability); the actions you’re required to take within strict time limits when the IRS CP2100 B Notice is issued to your organization; and how a fact-based and timely response to IRS Notice 972CG, based upon specific subparagraphs of the federal Regulations, can prevent assessment of the proposed penalty amount.

We’ll cover:

• Best practices for vendor setup and solicitation of TINs (taxpayer identification numbers)
• Resources to validate whether a tax ID number matches your 1099 reportable payee’s name
• Regulatory requirements to backup withholding federal income tax from certain payments and your federal tax deposit schedule for withheld amounts
• Steps for correct processing of B Notices (CP 2100/2100A) issued to your company by the IRS
• Responding to IRS proposed penalty notices (972CG) using your documented TIN solicitation, B Notice and backup withholding history.

Learning Objectives:

• Solicit tax identification numbers from payees as required by tax regulations
• Apply backup withholding to certain payments as required by tax regulations
• Implement payee and IRS correspondence and recordkeeping for regulatory compliance and defense against information return penalty assessments.