On December 16, 2019, the Treasury and the IRS released final regulations under section 871(m) of the Internal Revenue Code. The regulations finalize the 2017 temporary and proposed section 871(m) regulations without any substantive change. On the same day, the Treasury and the IRS released Notice 2020-2 to extend through 2022 the relief provided in Notice 2018-72.
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Notice
The IRS Introduces More Informative Backup Withholding Notices for Payers
On November 14, 2019, the IRS announced that it has redesigned Notices CP2100 and CP2100A with the goal of providing more information to affected payers. These Notices are used to alert payers that the IRS received Forms 1099 containing incorrect or missing Taxpayer Identification Numbers (TINs) for payees and that the payer may need to contact payees regarding their name and TIN information and/or backup withhold at a rate of 24% as a result. Payments potentially subject to backup withholding are reportable payments, such as interest (including tax-exempt interest), dividends, broker and barter exchange transactions, rents, royalties, nonemployee compensation, payments made in settlement of payment card and third party network transactions, and certain payments from fishing boat operators.
Continue Reading The IRS Introduces More Informative Backup Withholding Notices for Payers