To recap, B and P notices are sent by the IRS regarding incorrect name and TIN combinations from previous tax years’ information returns. They are also known as CP2100/CP2100A and 972CG, respectively. Failing to address and respond to these notices can result in penalty fines by the IRS. So how can you eliminate or at least diminish your chances of receiving these notices?

Best B and P Notice Prevention Method

The best way to avoid receiving CP2100 and, subsequently, 972CG is to validate your payee TIN information against IRS records before filing your information returns.

With TINCorrect, you can verify Social Security Numbers (SSN), Employer Identification Numbers (EIN), and other Taxpayer Identification Numbers (TIN) before submitting your information returns to the IRS.

TINCorrect works by allowing you to enter a TIN with the name of a vendor and verifying that information against IRS records. You can check each TIN individually or use bulk uploading for large batches. TINCorrect will alert you of any invalid TINs and typically return the results to you within one business day.

By recognizing TIN issues before you file, you have the opportunity to fix any errors prior to submitting to the IRS and avoid penalties. You can then request a TIN solicitation to ensure you receive the most accurate information from the vendors for whom you are filing. If the TIN continues to be rejected, you will have proof that you made a good faith effort to correct the invalid information, which will also help protect you against potential penalties.

BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.