Hello there, if you are reading this, chances are you have received a First B Notice from Cash App Taxes and you are wondering what it means and what you should do next. First of all, do not panic. This notice is not something to be afraid of, but it is important to address it promptly and correctly. In this blog post, we will discuss what a First B Notice is, why you received it, and what steps you should take to resolve the issue.
What is a First B Notice?
A First B Notice, also known as a Backup Withholding Notice, is a letter sent by the Internal Revenue Service (IRS) to inform you that your Taxpayer Identification Number (TIN) and name do not match their records. This notice is sent to you by a third-party payer, in this case, Cash App Taxes, to let you know that they are required to withhold a certain percentage of your payments to ensure that you are paying the correct amount of taxes.
Why Did You Receive a First B Notice from Cash App Taxes?
There are a few reasons why you may have received a First B Notice from Cash App Taxes. One common reason is that there may be a typo or error in your TIN or name on your tax forms. This could have happened when you entered your information on the Cash App Taxes platform or when they entered it into their records. Another reason could be that you have not provided your TIN to Cash App Taxes, and they are required by law to request it from you.
Another possible reason for receiving this notice could be that you have won a giveaway or received free bitcoin on Cash App Taxes. Even if the value is small, like in your case, the IRS still requires you to report it as income and pay taxes on it. If you have not reported this income, it could be the reason for the mismatch in your TIN and name.
What Should You Do Next?
The first thing you should do after receiving a First B Notice from Cash App Taxes is to verify the information they have on file for you. Check your TIN and name on your tax forms and make sure they match your Social Security card or IRS-issued TIN. If you find an error, you can correct it by filling out a Form W-9, Request for Taxpayer Identification Number and Certification. This form will update your information with Cash App Taxes and the IRS.
If the information is correct and you have provided your TIN to Cash App Taxes, you should check with the IRS to see if there are any discrepancies in their records. You can do this by calling the IRS Business and Specialty Tax Line at 1-800-829-4933. They will be able to provide you with information on why your TIN and name do not match and what steps you need to take to resolve the issue.
Lastly, it is always recommended to seek professional advice from a tax advisor or preparer. They will be able to guide you through the process and make sure you are taking the correct steps to resolve the issue. They can also help you with any other tax-related questions or concerns you may have.
Receiving a First B Notice from Cash App Taxes may seem daunting, but it is important to address it promptly and correctly to avoid any further issues. Make sure to verify your TIN and name, check with the IRS, and seek professional advice if needed. By taking these steps, you can ensure that you are in compliance with the IRS and avoid any potential penalties.