Notice CP2100 - Backup Withholding

Type: Backup Withholding | Level: medium

IRC Section: IRC § 3406

Response Deadline: N/A

If you received this as a business owner: one of your contractors or vendors gave you a Tax ID number that doesn't match IRS records. You may need to start backup withholding (withholding 24% of their payments and sending it to the IRS). If you received this as a contractor: your Social Security number or EIN on file with a client doesn't match — and your future payments may be reduced by 24% withholding.

A CP2100 is a backup withholding notice sent to payers — businesses or individuals who file 1099s. It informs the recipient that the taxpayer identification number (TIN) on a 1099 doesn't match IRS records, and that backup withholding may be required on future payments to that payee.

Common Triggers

• Incorrect TIN
• No TIN provided
• IRS notification of incorrect TIN

Resolution Steps

1. Step 1: Review the notice and backup withholding amount
2. Step 2: Ensure your TIN is correct on all accounts
3. Step 3: File Form W-9 with payers
4. Step 4: Contact us if withholding was incorrect
5. Step 5: Keep this notice for your records

Common Questions About CP2100

What is backup withholding and how much is it?

Backup withholding is 24% of payments made to a payee whose Tax ID doesn't match IRS records. The payer withholds this amount and sends it to the IRS on the payee's behalf.

How do I fix a TIN mismatch?

The payee needs to complete Form W-9 with the correct Tax ID. If the issue is with your own SSN or EIN, verify the number with the Social Security Administration or IRS, and provide a corrected W-9 to all payers.

Related Notices

• Notice CP2000

Additional Resources