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Taking a Chance on the IRS
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No one likes leaving situations up to chance. Instead we prefer to control as much as possible and plan for any contingency. Accounts payable departments, like any good business operation, are no different.
Although proper W9 procedures can reduce the likelihood that you will receive IRS B-Notices, some of your TINs may not be accurate. This issue features information to help you stay in compliance with IRS B-Notice requirements. After all, there's a good chance you'll need it. |
| Patrick Harbin – Editor
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Handling B-Notices |
In just a few months, the IRS will begin sending out CP2100 forms – more commonly known as B-notices – informing payers that their vendors have supplied incorrect Taxpayer Identification Numbers (TINs).
If your organization receives a B-Notice, you have a limited time to act and remain compliant with IRS rules and regulations. The following is a brief timeline describing your requirements in the B-Notice process:
- The IRS issues forms CP2100 or CP2100A in October informing payers that a payee provided an incorrect TIN
- Within 15 days of receiving the notice, the payer must send a copy of the notice to the payee along with a form W-9
- If the payee fails to respond within 30 business days after the payer received the B-notice, the payee must begin backup withholding
While these are the basic B-Notice requirements, things become more complicated if you receive a second notice for the same payee or if the payee has received more than one notice during the past three years.
Register for The Accounts Payable Network's upcoming audio conference, What to Do When You Receive a B-Notice, for a detailed breakdown of the B-Notice process, including what to do if the IRS challenges your procedures.
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| Check Volume Declining |
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The amount of checks written in the United States continues to fall. According to a recent report from TowerGroup Global Payments, there will be 17.9 billion check transactions in 2009. Read the story on TAPC
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Just for Fun! |
As any golfer knows, hitting a hole in one is difficult. After 50 years of playing, one Michigan man resigned himself to the fact that he would never get one. That is, however, until he hit two in a single round.
Sixty-six-year-old Bob Hickey recently hit two holes in one during a round at Marsh Ridge in Gaylord, Mich. The odds of such a feat are calculated at 67 million to 1. Read the full story on Yahoo News.
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