IRS PMTA: Compliance with CP2100, CP2100A Notice and Backup Withholding (IRC §3406)

Where a payor made a reportable payment and received a CP2100/2100A notice, the payor’s compliance with the instructions stated in the notice does not imply that the payor does not have backup withholding liability under §3406(a)(1)(A) with respect to a reportable payment made before compliance, the Chief Counsel’s Office advised. Under §3406(a)(1)(A), the payor must backup withhold during the period during which the Taxpayer Identification Number has not been furnished in the manner required, regardless of whether the payor receives and complies with a CP2100 or CP2100A notice, the Chief Counsel’s Office stated. [PMTA 2023-03 (Sept. 21, 2023)]