IRS Releases Updated Publication 1281

Paul Ogawa
June 22, 2021

The IRS recently released an updated version of Publication 1281, Backup Withholding for Missing and Incorrect Name/TIN(S). This publication provides information and procedures relating to backup withholding, including instructions on how payers and recipients must navigate the CP2100/2100A notification process.

Most notably the publication was updated to include Form 1099-NEC by name: previously this form was left out by name only, as nonemployee compensation was and continues to be a type of income to which backup withholding applies. To supplement this change form code 71 in the payee “B” record was updated to identify the 1099-NEC for tax year 2020 and later; code 71 identifies the 1099-H for tax years 2019 and prior.

To review this publication in its entirety please visit the IRS website by clicking here.

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Paul Ogawa

Paul Ogawa is a Senior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.
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