First B Notice Sample – Template, Timing & Filing Guide
What Is a First B Notice?
When you file Form 1099s and the Internal Revenue Service (IRS) identifies a vendor’s or payee’s name and Taxpayer Identification Number (TIN) combination as mismatched, you may receive a CP 2100 or CP 2100A Notice. On the first occurrence within three calendar years for that payee, you must send a First B Notice. This notice includes a request for the payee to fill out and return Form W-9 so you can correct the information.
For more details about CP 2100 Notices and the overall B Notice process, see our IRS CP2100 Notice and B Notice Guide.
When to Send the First B Notice and What It Must Include
- Send the First B Notice within 15 business days after receiving your CP 2100 or CP 2100A Notice from the IRS.
- Give the payee a deadline — typically no later than 30 business days after the notice date — to return the completed Form W-9.
- The mailing envelope should be clearly marked with “IMPORTANT TAX INFORMATION ENCLOSED.”
- If the payee does not respond by the deadline, begin backup withholding at 24 percent on future reportable payments until you receive a valid Form W-9.
Sample First B Notice Language
Below is a sample letter you can adapt for your First B Notice, based on IRS Publication 1281. Fill in your payer’s details, the payee’s information, and the deadline for response.
FIRST B NOTICE
(Please complete and return the enclosed Form W-9)Dear Payee:
The Internal Revenue Service (IRS) recently notified us that the name and taxpayer identification number (TIN) combination you submitted does not match the information on file with the IRS or Social Security Administration (SSA).
Because this is the first instance of such a notification within the applicable period, we request that you complete and return the enclosed Form W-9 by [insert date]. If we do not receive the completed Form W-9 by that date, federal backup withholding at the rate of 24 percent may begin.
Please sign where indicated on the W-9 and return it in the enclosed envelope. If you have any questions, you may contact [payer’s contact name] at [phone number or email].
Sincerely,
[Payer’s authorized signature]
[Payer’s name]
How to Use This Notice Properly
- Confirm receipt of the CP 2100 or CP 2100A Notice and identify the listed payees.
- Prepare the First B Notice using the sample above, adding your payer and payee details, and a clear deadline for response.
- Include a blank Form W-9 for the payee to fill out and sign.
- Mail the notice within 15 business days of receiving the IRS notice and retain proof of mailing.
- If no completed W-9 is received by the deadline, begin backup withholding at 24% on future payments to that payee until you receive a valid W-9.
- Once you receive the signed W-9, update your records, stop backup withholding, and use the corrected information in future Form 1099 filings.
For a look at the Second B Notice Sample, visit our companion guide.
Common Mistakes to Avoid
- Sending the First B Notice late (after the 15-day window).
- Forgetting to include a blank Form W-9 for completion.
- Using the wrong backup withholding rate (it is 24%).
- Not marking the envelope “IMPORTANT TAX INFORMATION ENCLOSED.”
- Failing to document proof of mailing or keep the returned W-9.
Why Sending the First B Notice Matters
Sending a First B Notice demonstrates that your business is following the IRS’s backup withholding program and taking corrective action when a payee’s name and TIN combination do not match IRS or SSA records. Proper notice handling reduces the risk of penalties and shows good-faith compliance with IRS regulations.
Frequently Asked Questions
What triggers a First B Notice?
The payer receives a CP 2100 or CP 2100A Notice listing a name/TIN mismatch for a payee, and it’s the first such notification within three calendar years.
Can I skip the First B Notice and go straight to backup withholding?
No. The IRS requires you to send a First B Notice and give the payee a chance to provide a corrected Form W-9 before beginning backup withholding.
What happens if the payee never returns the W-9?
You must start backup withholding at 24% on reportable payments and continue until you receive a valid Form W-9.
How long should I keep the returned W-9 and notice?
Keep all mailed notices, returned forms, and proof of mailing for at least four years.
For additional information, visit our B Notice Q&A.