Understanding and Resolving1099-K B Notices

B Notice requires immediate action to fix mismatches in tax ID or business name for payment accounts to avoid holds, upload a W-9 to correct

Tyson Jones avatar
Written by Tyson Jones
Updated over a week ago

A B Notice is an important notification from the IRS indicating that the information provided for your payment account, such as the tax ID number and legal business name, does not match IRS records. These discrepancies can cause issues with payment processing and may require your immediate attention to avoid any holds or interruptions in service.

Understand the 1099-K B Notice

The 1099-K form reports gross payment transactions processed by the payment processor. If you have process payment through RentRedi during the previous tax year, you might receive a 1099-K form. A B notice is sent when the IRS notices a mismatch between the Tax ID and Legal Business Name, meaning taxes are not being properly reported.

  • B Notices will be sent out Feb 27th (via physical mail) to those who do not take care of the mismatch

  • Customers who get a B Notice, will be required to provide a W-9 Form (this can no longer be update within RentRedi)

  • Customers will have 15 Business Days to correct this mismatch after the B Notices are sent

    • Processing will be put on hold for that payment account until information is corrected

Correcting the 1099-K Form

1099-K forms can be corrected up to the beginning of May. After that, any corrections will need to be request directly to the IRS.

Verify Your Information

First, compare the information on the 1099-K form you received from the payment processor with your tax records. Check for any discrepancies in the tax identification number (TIN) provided or name. It's possible the discrepancy could be due to a simple mistake like a typo in the TIN or an omission of punctuation.

Respond Promptly

It's important to respond to a B notice promptly to avoid any potential penalties or interest charges by the IRS. Failure to address a B Notice will result in the payment account being placed On Hold until the discrepancy can be resolved.

To correct your 1099-K:

  • Upload an updated copy of your W-9 Form using our secure upload link

  • Watch for follow ups

    • Our underwriting team will coordinate the update to your payment account with the payment processor, there may be times where the processor will request additional documentation from you, this will be communicated to the primary email address on file.

Failure to Respond

Customers will have 15 Business Days to correct this mismatch after the B Notices are sent. If the payment account has not been corrected by that time, payment processing will be put on hold for that payment account until information is corrected.

Frequently Asked Questions (FAQ)

Why do I keep getting these emails?

RentRedi has been working with the payment processor and our customers since early Dec 2023 to update payment account details to ensure that they match IRS records. You are receiving this notice because at least one of your payment accounts still does not match the IRS records. We are happy to help you identify the fields that need to be corrected and prevent any holds in processing.

I thought I already fixed this?

Unfortunately, these updates are not immediately validated against IRS records. It is likely that the updates you made previously did not correct the mismatched records. Our support team is happy to help you look into this and determine where the error lies.

What does this even mean, I don’t understand.

The payment processor validates the information provided when creating or updating the payment account against IRS records. If the tax ID and legal business name does not match, the processor is required to request updates. We can help you determine where the error is and what needs to be updated to resolve it.

Why can’t I update this myself?

RentRedi has attempted to proactively contact impacted customers in December and January to remedy this mismatch in the records. Once the processor sends B-Notices, no corrections can be made from within RentRedi. This is to help ensure updates submitted are properly processed with the payment processor. A W-9 Form will help them do this.

I do not want to share my SSN.

A tax ID is required in order to process payments online. This is true of any payment process and is a federal requirement. If your business has an EIN (employer identification number) that can be used in combination with your legal business name. Otherwise, a SSN is the only other acceptable tax identification number.

That payment account has been deleted.

Not a problem, we can get that account updated using a W-9 Form. Please use our secure document upload link or email a copy of the completed form to [email protected]. Even if an account is no longer being used, you should ensure all tax information is up to date to prevent any issues.

I no longer use RentRedi.

If you no longer have access to your RentRedi account, please submit a W-9 Form to [email protected]. They will pass this information to the payment processor and get that account updated for you. Even if an account is no longer being used, you should ensure all tax information is up to date to prevent any issues.

I have a pass-through corporation, that’s the name of the business.

Typically, this means that you are using an SSN as your taxpayer identification number. You can leave your business name in the DBA field, but the legal business name field needs to contain your full legal name as it appears on your social security card.

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