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.